BUSI 3410U Lecture 8: Lecture 8
Document Summary
Preferred shares can have the same features of a bond but they are not. Yield is based on what you pay for the share. Dividend yield is the same thing as yield. Common shares might or might not have voting. They are typically held within families, founders, sometimes not even available to the public. It"s not fair bc a lot of the multiple voting shares are not traded, they are held by the owners. Categories of common shares: blue chip: household names, growth, defensive: relatively stable vs. other companies, cyclical. For example if it"s 1. 2 to 1, the company is 20% more cyclical than the company it"s compared to. If the tsx goes down by 20%, the stock would be down by 14% (0. 7 x 20). Tobacco, dollar stores are defensive, loblaw"s (you still need to eat) Tsx composite and tsx 500 are market cap weighted.
