Questions from Financial Markets

Q: Describe some of the characteristics of common stock.

Describe some of the characteristics of common stock.

Q: List and briefly explain the special features usually associated with preferred stock

List and briefly explain the special features usually associated with preferred stock.

Q: Why study stocks if the net amount of stock issues is negative

Why study stocks if the net amount of stock issues is negative?

Q: Why should investors consider common stock as an investment vehicle if they

Why should investors consider common stock as an investment vehicle if they have a long-term time horizon?

Q: Why does dividend income growth exceed that of bond income growth over

Why does dividend income growth exceed that of bond income growth over a period of time?

Q: How do firms decide how much of their earnings to distribute as

How do firms decide how much of their earnings to distribute as dividends?

Q: 1. It is more difficult to estimate a stock’s intrinsic value

1. It is more difficult to estimate a stock’s intrinsic value than to estimate a bond’s intrinsic value because a. of credit rating differences. b. dividends can vary over time. c. the Fed’s actions...

Q: What are the major sources of long-term funds available to

What are the major sources of long-term funds available to business corporations? Indicate their relative importance.

Q: Explain how an investor may view a stock dividend, a stock

Explain how an investor may view a stock dividend, a stock split, and a stock repurchase plan with regards to the value of his stock holdings.

Q: Briefly describe how securities are valued.

Briefly describe how securities are valued.