AFM121 Chapter Notes - Chapter 8-9: Cac 40, Uptodate, Dow Jones Industrial Average

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM121
• Professor: Craig Geoffrey

Document Summary

Value of each shares changes with changes in total value of company"s equity and its total shares outstanding: attractive to investors looking to proit from future accomplishments of the issuer. Potential for signiicant gains and losses (you can lose it all without any compensation of your total loss) Following rights are associated with common share ownership: potential for capital appreciation: As earnings are reinvested in the irm, the asset base and common equity base grow: stock splits. A company splits its shares thereby doubling (or tripling or more ) its shares outstanding typically used to obtain a price in a target range that will entice investors and prevent odd-lot problems. On a stock chart, straight line cutting price in half means stock splits. Bloomberg, capital iq will change all historical data to show stock split. If the stock split is 2 for 1; the share price is halved. A stock split does not increase a company"s.