BU111 Lecture Notes - Lecture 4: Annual Percentage Rate, Annuity
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BU111 Full Course Notes
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Voting rights yes no unless number of dividends unpaid in arrears . Bankruptcy paid after preferred paid after debt holders. Pre-emptive right purchase more shares at set price. Redemption company can buy back convertibility to common cumulative. Participation feature: what impacts a stock price, demand and supply of stock due to negative or positive perception/facts o primary factors. Earnings above or below expectations, rumors. General market conditions bull vs bear markets, economy, interest (especially preferred) Speculation bought or sold on belief proce will soon move: price, price of a security is a collective expression of all opinions of those who ware buying and selling, undervaluedissue-offershigherreturnthanstocksofsimilarrisk. Future: when you give/get/have money today and try to find out how much it"ll be in. Value single amount the future: monthly principle and interest payments never change from the first to the last, typesthatallowinteresttochangethroughoutperiod, can negotiate flexible payments (increase amount of payment or pay lump sum at end of year)
