BU111 Final: Alternate Types of Investment - Common Stock all the notes pertaining to common stocks. includes sample calculations, diagrams, and examples
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BU111 Full Course Notes
Verified Note
19 documents
Document Summary
Common stockholders are the true owners of any organization. They bear the greatest levels of risk but also enjoy the greatest potential rewards with regard to both dividends and capital gains when compared to bondholders and preferred stockholders. Voting rights: major issues such as stock splits, reverse splits, and mergers are voted upon by stockholders unlike bond holders and preferred stock holders. Bonds and preferred stock prices are closely related to the prevailing rates of interest in the economy. Strictly on the basis of the laws of supply and demand. The sum total of all investor"s perceptions of the future profitability of a company. If investor feels a company will be highly profitable in the future that means high levels of dividend payout and appreciation in share values (capital gains) This will mean high levels of demand for a limited supply of shares which will.
