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What is preferred stock and why is the US Government buying it as part of the bailout plan?
Unlike common stock, preferred stock can be converted to bonds at the discretion of the owner. The government, by buying preferred stock, gets the rapid growth of stock with the safety of bonds. If there is any money left over after bankruptcy, bond holders are paid first. If there is any money left, after that, common stockholders are paid.
How do you abbreviate the word performance?
In business and the stock market, you abbreviate the word performance as PERF. In the stock market, performance refers to how a stock is doing.
Is preferred stock considered to be more like common stock or bonds?
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
What is stock exchange and what is stocks and bonds?
A stock exchange is a place where stocks are traded. Stocks are shares of a company. Bonds are like a loan to a company.
Does performance-linked compensationencourage excutives to focus on short-term performance at the expense of long-term growth?
Frequently it does. It does not have to, however. As an example, if the reward is provided in the form of non-sellable corporate stock then the executives have a long-term incentive.
How would you put these into a business pyramid by ordering them 1-17 by risk?
Balanced Mutual Funds Blue Chip Common Stock Certificates of Deposit Collectibles Commodities Growth Mutual Funds High -Grade Preferred Stock High-Grade Convertible Bond High-Grade Corporate Bonds High-Grade Municipal Bonds Insured Savings/Checking Accounts Money Market Accounts Penny Stock Real Estate Speculative Stocks, Bonds and Mutual Funds Treasury Issues U.S Savings Bonds (i couldnt put them in the question)
An example of growth factor in common stock is issuing new stock to provide capital for future growth?
An example of the growth factor in common stock is retaining profits in order to reinvest into the firm
Is there a difference between accounting for conversion of bonds and accounting for the conversion of preferred stock?
Bonds have discounts and premiums and accrued interest. Preferred Stock doesn't.
What constitutes a constant growth stock and how it is value?
What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.
What are the three types of securities issued by a corporations?
common stock, preferred stock, and bonds
What is stock evaluation?
Stock evaluation is the process of analyzing a company's financial information, market performance, and other factors to determine the worth of its stock. Investors use various metrics and methods to assess the attractiveness of a stock as an investment opportunity. Key elements of stock evaluation include analyzing a company's revenue, earnings, growth potential, and competitive position in the market.
Are bank bonds the same as stock bonds?
No a bank bond is a low interest savings which is kept track of by a paper bond instead of an account number. Stock bonds are business stocks being traded around.
