General Stock

Question 1

stock is

Answer 1

slice of the pie. /share of ownership

Question 2

value is comprised of

Answer 2

dividends and liquidation

Question 3

liquidiation value greater if

Answer 3

lesss dividends are paid.

Question 4

all corps eventually

Answer 4

die

Question 5

point of stock is

Answer 5

economic return

Question 6

shareholders have ultimate

Answer 6

control

Question 7

shareholders are only stakejodlers whose interest

Answer 7

identical to the corps

Question 8

shareholders work through

Answer 8

board of directors

Question 9

not all stock is

Answer 9

equal

Question 10

common stock

Answer 10

largest, traditional, 1 share 1 vote, 1 share of dividend, and1 share on dissolution

Question 11

preferred stock

Answer 11

common stock with extra benefits, such as fixed dividends, guarantred divididends

Question 12

special/mutant stock

Answer 12

here to do something specific. can be anything people voluntarily agree to.

Question 13

what is best?

Answer 13

depends on the situation

Question 14

facotrs for deciidng what is best.

Answer 14

economic leverage, risk pref of buyers, financial sitation of the seller, tax situation.

Question 15

bonds are basically

Answer 15

IOU’s