Questions from General Investment

Q: What is the purpose of each of the following? a

What is the purpose of each of the following? a) Preemptive rights b) Cumulative voting c) The board of directors

Q: Even though bonds are debt obligations, investing in them involves risk

Even though bonds are debt obligations, investing in them involves risk. What are the sources of risk? What role do rating services play in managing risk?

Q: Why may a dividend increment lag after an increase in earnings?

Why may a dividend increment lag after an increase in earnings? Why may a firm distribute dividends even though earnings decline?

Q: What are the differences among the ex-dividend date, the

What are the differences among the ex-dividend date, the date of record, and the distribution date?

Q: What are the advantages associated with dividend reinvestment plans?

What are the advantages associated with dividend reinvestment plans?

Q: How do stock dividends differ from cash dividends? How do stock

How do stock dividends differ from cash dividends? How do stock dividends differ from stock splits?

Q: What are the tax implications of the following? a)

What are the tax implications of the following? a) Dividend reinvestment plans b) Stock dividends c) Stock splits d) Corporate stock repurchases

Q: How does preferred stock differ from common stock?

How does preferred stock differ from common stock?

Q: If a preferred stock is in arrearage, what does that imply

If a preferred stock is in arrearage, what does that imply about the dividend payment?

Q: What is the difference between the following? a) Cross

What is the difference between the following? a) Cross-sectional and time-series analysis b) The current ratio and the quick ratio c) Receivables turnover, inventory turnover, and fixed asset turnover...