stock market (i.e. public company ownership)

Question 1

primary market

Answer 1

Initial public offerings(IPO) and stock issues

Question 2

secondary market

Answer 2

measure of company viability
- the trading where people buy and sell stocks
- in theory anyone can buy shares, but in practise usually the banks already sell them before it gets to the stock market

Question 3

How investors make money?

Answer 3

• sell stocks
• dividend payements
• voting rights for shareholders but not always
• what happens in a bankrupcy?

Question 4

Voting rights

Answer 4

• common stock/voting share/ordinary share: 90% of the time you can vote
• preferred stock: no voting right, but if the company dies you might get stg
• other non-voting stock: no voting rights but give stg else

Question 5

Who gets paid in bankrupcy?

Answer 5

1. Bonds
2. employees and owed compensation
3. other creditors
4. preferred shareholders
5. common shareholders - but in practise they never