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Find the after-tax return to a corporation that buys a share of preferred stock at 40 sells it at year end at 40 and receives a 4 year end dividend. The firm is in the 30 percent tax bracket?
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What are advantages and disadvantages of common stocks?
Common stock is the major type of stock that is issued, it is different from preferred stock in that preferred stocks receive the first part of a dividend payment. Common stock receives what is left over after all of the preferred stocks have received their share, if anything. The benefit comes when there is a large dividend paid, many times (depending on the terms) preferred stocks have a limit to what they will pay per share, but the common stocks do not have a limit, and share equally what is paid out after the preferred stock, so there is a great opportunity for gain when times are good and large dividends are paid. The disadvantage comes when smaller dividends are paid, these stocks may receive only a little portion or even nothing from the dividend payment after the preferred stocks receive their shares. Common stock also come with voting rights to which preferred stocks may not entitle the owner.
What percent securities are traded on the secondary market the issuing corporation receives of the selling price?
is it fifty percent that the issuing corporation receives of the selling price when the time securities are traded on the secondary market?
Each time securities are traded on the secondary market the issuing corporation receives how much of the selling price?
none
What do you call money return a stockholder receives on his or her investment in a company?
The money a company periodically pays out is called a dividend. The money a stockholder receives by selling a share of stock is simply a return on their investment. (This may be a profit or loss, depending on whether the stock price has gone up or down while they held it).
How many people own a corporation?
Most corporations can be owned by any number of people. Ownership in a corporation is represented by shares of stock. Each "share" represents an equal portion of ownership, and can be owned by a single person, more than one partners, or even another corporation. A special kind of corporation, called a Subchapter-S Corporation, receives certain tax benefits but cannot have more than 75 individual owners at a time.
When a corporation receives a dividend from another corporation how is it taxed?
Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.
Can you list the general rights of a common stockholders?
Vote at Stockholders' meetings Sell or otherwise dispose of their stock Purchase their proportional share of any common stock later issued by the corporation Receive the same dividend, if any, on each common share of the corporation Share in any assets remaining after creditors and preferred stockholders are paid when, and if, the corporation is liquidated. Each common share receives the same amount Stockholders also have the right to receive timely financial reports.
What is eleemosynary corporation?
a corporation that both receives and dispenses charity
What are advantages and disadvantages of stocking?
Common stock is the major type of stock that is issued, it is different from preferred stock in that preferred stocks receive the first part of a dividend payment. Common stock receives what is left over after all of the preferred stocks have received their share, if anything. The benefit comes when there is a large dividend paid, many times (depending on the terms) preferred stocks have a limit to what they will pay per share, but the common stocks do not have a limit, and share equally what is paid out after the preferred stock, so there is a great opportunity for gain when times are good and large dividends are paid. The disadvantage comes when smaller dividends are paid, these stocks may receive only a little portion or even nothing from the dividend payment after the preferred stocks receive their shares. Common stock also come with voting rights to which preferred stocks may not entitle the owner.
What are advantages and disadvantages of common stocks?
Common stock is the major type of stock that is issued, it is different from preferred stock in that preferred stocks receive the first part of a dividend payment. Common stock receives what is left over after all of the preferred stocks have received their share, if anything. The benefit comes when there is a large dividend paid, many times (depending on the terms) preferred stocks have a limit to what they will pay per share, but the common stocks do not have a limit, and share equally what is paid out after the preferred stock, so there is a great opportunity for gain when times are good and large dividends are paid. The disadvantage comes when smaller dividends are paid, these stocks may receive only a little portion or even nothing from the dividend payment after the preferred stocks receive their shares. Common stock also come with voting rights to which preferred stocks may not entitle the owner.
Who receives income from a corporation?
Employees and stockholders.
Who receives the profit in a corporation?
split it equally
Each time securities are traded on the secondary market the issuing corporation receives of the selling price?
No. When securities are traded the issuing corporation receives nothing. The broker enabling the trade receives a fee. That is it. The issuing corporation only gets its money when it issues its stock at the initial offering.
What type of corporation that benefits the public and receives a tax break?
an s corp-or special corporation
What type of corporation benefits the public and receives a tax break?
an s corp-or special corporation
What percent securities are traded on the secondary market the issuing corporation receives of the selling price?
is it fifty percent that the issuing corporation receives of the selling price when the time securities are traded on the secondary market?
What is a rule that applies to dividends?
For example, assume that a cash dividend is declared on August 15, payable on September 15. If Stockholder A owns the stock on August 15, he or she receives the dividend on September 15.
