Questions from General Investment


Q: Briefly explain how the dividend decision is made. What factors are

Briefly explain how the dividend decision is made. What factors are important in deciding whether, and in what amount, to pay dividends?

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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 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: 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 with a stock split? Is a 200% stock dividend the same as a t...

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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: Which investment approach (or approaches) do you feel would be

Which investment approach (or approaches) do you feel would be most appropriate for a quality-conscious investor? What kind of investment approach do you think you’d be most comfortable with? Explain....

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Q: An investor purchased a stock one year ago for $42.

An investor purchased a stock one year ago for $42. It paid an annual cash dividend of $2.50, and now it is worth $51.75. What total return did the investor earn? Would the investor have experienced a...

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Q: What are two or three of the major investment attributes of common

What are two or three of the major investment attributes of common stocks?

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