Management and Organizational Studies 2277A/B Chapter 11: Investing in Stocks

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Investing in stocks: stock exchange, stock exchanges: facilities that allow investors to purchase and sell existing stocks. You are trading for the price the seller wants to sell for and that price alone, not what the market has set for a particular stock. Stock quotations: price quotations are available for activity traded stocks. B: you preference for a speci c rm might be heavily in uenced by the individual broker who serves you, brokerage commissions, you can choose between: Discount brokerage firm: a brokerage rm that executes transactions but doe snot offer investment advice. You are legally bound by the instruction you make: number of shares, board lot: shares bought or sold in multiples of typically 100 shares, the size of the. B: a nial statement that measures a rm"s revenues, expenses and earnings over a. Total long term debt / total assets. A rm with a high debt ratio have a relatively high risk of defaulting on future payments.