Corporation Financials

Question 1

A security is

Answer 1

A tradeable financial asset

Question 2

Examples of a security

Answer 2

Stocks, bonds

Question 3

Share price is a reflection of . . .

Answer 3

The collective opinion and expectations of investors regarding a company’s present and future value, influenced by supply and demand, company performance, and overall market conditions

Question 4

Shares which have been issued and purchased are . . .

A corporation may …

Answer 4

Outstanding
Redeem an outstanding share

Question 5

What is a bond?

Answer 5

Debt interest in corporation. Promise to pay specific sum at definite time with periodic interest payments. Does not dilute voting control

Question 6

What are the four kinds of financial statements and what are their purpose?

Answer 6

1) balance sheets-solvency at specific point in time
2) income statement-profitability at specific point
3) cash flow statements-asses cash flow for certain period
4) statement of stockholder equity