Podcast
Questions and Answers
Stocks represent fractional ownership of equity in a _____________________. Corporation.
Stocks represent fractional ownership of equity in a _____________________. Corporation.
The two main types of stock are ____________________ and preferred. Common.
The two main types of stock are ____________________ and preferred. Common.
Shareholders have a claim to part of the company's assets and _____________________. Earnings.
Shareholders have a claim to part of the company's assets and _____________________. Earnings.
Stocks are predominantly bought and sold on _____________________. Stock exchanges.
Stocks are predominantly bought and sold on _____________________. Stock exchanges.
Over the long run, stocks have historically outperformed most other _____________________. Investments.
Over the long run, stocks have historically outperformed most other _____________________. Investments.
Companies issue stock to raise funds to operate their _____________________. Businesses.
Companies issue stock to raise funds to operate their _____________________. Businesses.
Owning stock gives you the right to vote in shareholder meetings, receive _____________________, and sell your shares. Dividends.
Owning stock gives you the right to vote in shareholder meetings, receive _____________________, and sell your shares. Dividends.
There are important distinctions between stocks and _____________________. Bonds.
There are important distinctions between stocks and _____________________. Bonds.
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Study Notes
- A stock represents fractional ownership of equity in a corporation.
- There are two main types of stock: common and preferred.
- Shareholders have a claim to part of the company's assets and earnings.
- Stocks are bought and sold predominantly on stock exchanges.
- Stocks have historically outperformed most other investments over the long run.
- Companies issue stock to raise funds to operate their businesses.
- Owning stock gives you the right to vote in shareholder meetings, receive dividends, and sell your shares.
- There are important distinctions between stocks and bonds.
- All investments have a degree of risk.
- The type of stock held by a shareholder determines the rights and benefits of ownership.
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