Questions from General Investment


Q: Why is the ex-dividend date important to stockholders? If

Why is the ex-dividend date important to stockholders? If a stock is sold on the ex-dividend date, who receives the dividend—the buyer or the seller? Explain.

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Q: What is the difference between a cash dividend and a stock dividend

What is the difference between a cash dividend and a stock dividend? Which would be more valuable to you? How does a stock dividend compare to a stock split? Is a 200% stock dividend the same as a two...

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Q: What are dividend reinvestment plans, and what benefits do they offer

What are dividend reinvestment plans, and what benefits do they offer to investors? Are there any disadvantages?

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Q: Define and briefly discuss the investment merits of each of the following

Define and briefly discuss the investment merits of each of the following. a. Blue chips b. Income stocks c. Mid-cap stocks d. American depositary receipts e. IPOs f. Tech stocks

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Q: Why do most income stocks offer only limited capital gains potential?

Why do most income stocks offer only limited capital gains potential? Does this mean the outlook for continued profitability is also limited? Explain.

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Q: With all the securities available in the United States, why would

With all the securities available in the United States, why would a U.S. investor want to buy foreign stocks? Describe the two ways in which a U.S. investor can buy stocks in a foreign company. As a U...

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Q: Briefly describe each of the following types of bonds: (a

Briefly describe each of the following types of bonds: (a) Treasury bonds, (b) agency issues, (c) municipal securities, and (d) corporate bonds. Note some of the major advantages and disadvantages of...

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Q: Briefly define each of the following and note how they might be

Briefly define each of the following and note how they might be used by fixed-income investors: (a) zero-coupon bonds, (b) CMOs, (c) junk bonds, and (d) Yankee bonds.

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Q: What are the special tax features of (a) Treasury securities

What are the special tax features of (a) Treasury securities, (b) agency issues, and (c) municipal bonds?

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Q: What are the four stages of an industry’s growth cycle? Which

What are the four stages of an industry’s growth cycle? Which of these stages offers the biggest payoff to investors? Which stage is most influenced by forces in the economy?

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