STOCKS and BONDS Flashcards
official evidence of part-ownership of a stock company which may be used in claiming company’s assets and earnings
STOCKS
also known as shares or equity.
STOCKS
These stocks buyers are called
stockholders
are not personally answerable for any company liability.
Stockholders
Stocks do not mature
t or f
T
guaranteed a fixed dividend for as long as they own the stock
PREFERRED STOCK
control the operations of the company for they represent ownership. They are given the right to cast a number of votes equivalent to the number of their shares in electing the members of a board which performs oversight function into the operation of the company, including management decisions
COMMON STOCK
creditors to the corporation
bondholders
have a higher claim on assets that stockholders, in case of bankruptcy,
bondholders
an official promissory document issued by the debtors stating the acknowledgement of the amount of debt and the pledge to pay back the loaned amount
bond
it is also the quantity used in comparing the return on specific investments.
The tool by market investors and commercial managers in describing the stock market
MARKET INDEX