Define Stock - ANS-They are also called equities & represent ownership in companies
and are issued by corporations.
Bonds - ANS-1. Also called debt or sometimes notes. They can be issued by a
corporation or governme
...
Define Stock - ANS-They are also called equities & represent ownership in companies
and are issued by corporations.
Bonds - ANS-1. Also called debt or sometimes notes. They can be issued by a
corporation or government entity. The owner is the lender issuer is the debtor.
Characteristics of Common Stock - ANS-1. All companies issue common stock.
2. Ownership position
3. Most Junior all securities.
Why Purchase Common Stock? - ANS-1. Capital Gains (BUY LOW SELL HIGH)
2. Dividends.
Growth Stock - ANS-Mainly used for companies wanting to secure capital with the idea
of getting a return on investment.
Income Stock - ANS-Utility companies or gas or companies that have a history of
paying dividends
Rights of Common Stockholders - ANS-1. Voting Rights
2. Transfer of ownership
3. Books and Records.
What is the Normal Voting Method? - ANS-Statutory
Dividends. How do they Work? - ANS-1. Dividends are paid through the companies
profits.
2. The board of directions declares the dividends
What is a Warrant - ANS-1. Long Term
2. Usually attached to bond offering.
-marketability
-lower interest rate on bonds
4. Exercise, sell them or let them expire.
Rule 144 - Control Securities - ANS-- Regulates the sale of control securities.
1. Officers
2. Directors
3. Own or control more than 10% of the majority of stocks.
Must File a form 144 when they start selling stock. Effective 90 days. Volume
limitations: Greater of 1% of the outstanding number of shares. The average weekly
trading volume of the most recent four weeks whichever is greater!
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