Questions from General Investment

Q: How would you characterize the historical performance of stocks?

How would you characterize the historical performance of stocks?

Q: Describe the role that dividends and capital gains play in delivering returns

Describe the role that dividends and capital gains play in delivering returns to common stock investors.

Q: What are some of the advantages and disadvantages of owning common stock

What are some of the advantages and disadvantages of owning common stock? What are the major risks to which stockholders are exposed?

Q: What is a stock split? How does a stock split affect

What is a stock split? How does a stock split affect the market value of a share of stock? Do you think it would make any difference (in price behavior) if the company also changed the dividend rate o...

Q: What is a stock spin-off? In very general terms

What is a stock spin-off? In very general terms, explain how a stock spin-off works.

Q: Define and differentiate between the following pairs of terms. a

Define and differentiate between the following pairs of terms. a. Treasury stock versus classified stock b. Round lot versus odd lot c. Par value versus market value d. Book value versus investment va...

Q: What is an odd-lot differential? How can you avoid

What is an odd-lot differential? How can you avoid odd-lot differentials? Which of the following transactions would involve an odd-lot differential? a. Buy 90 shares of stock b. Sell 200 shares of sto...

Q: Identify the three major parts of security analysis, and explain why

Identify the three major parts of security analysis, and explain why security analysis is important to the stock selection process.

Q: Briefly discuss several aspects of an industry that are important to its

Briefly discuss several aspects of an industry that are important to its behavior and operating characteristics. Note how economic issues fit into industry analysis.

Q: Calculate a one-year holding period return for the following two

Calculate a one-year holding period return for the following two investment alternatives. Which investment would you prefer, assuming they are of equal risk? Explain.