Stocks Flashcards
An official evidence of part-ownership of a stock company which may be used in claiming company’s assets and earnings
Stock
What are stocks also known as?
Shares or equity
What are stock buyers called?
Stockholders
Why do stocks not mature?
There is no maturity date to stocks, unless the stock is withdrawn
How do stockholders gain money?
Stockholders receive profit share of the company’s portion of income in the form of a dividend.
What are the kinds of stocks?
Preferred stock and common stock
What is preferred stock?
It is when stockholders are guaranteed a fixed dividend for as long as they own the stock.
What is common stock?
Stockholders are not guaranteed a fixed dividend, but can enjoy higher return of investment if company does well.
Which stock owners are given the right to cast a number of votes in electing the members of a board?
Common stock owners
In case of company bankruptcy, which type of stock owners get paid off first?
Preferred stock owners
True or false, individual stockholders have guarantee of dividends
False
True or false, the company is not obliged to pay dividends
True
What is the market place for stocks called?
Exchange
What is a primary market?
It is where securities, when created, are sold at through initial public offering.
