unit 12 Flashcards
voting rights
common stock for owners as of record date
preferred stock has no voting rights
stock dividend
cost basis decreases
no effective change in the value of the position
no economic benefit
adr represents
foreign security in the domestic market
short interest trading theory
technical analysis
bullish position because people are shorting, eventually those shorts have to purchase and that may present an uptrend
odd lot theory
tech analysis
do opposite of these guys
advance/decline
breadth of market
more advancers is bullish
more decliners is bearish
fundamental analysis and risk
used to minimize business risk
dividend discount model
the present value of future dividends using discounted cash flow
dividend growth model
assumes growth of dividends
which dividend model produces higher valuation
dividend growth model because it assumes dividends grow rather than remain the same
securities exchange act 1934 regulates
transfer agents
broker dealers
support
price range where stock appears cheap and attracts buyers
resistance
price range where stock appears expensive and initiates increased selling
The benefit of any convertible security
bond or preferred stock, is that the ability to convert into the issuer’s common stock allows those investors to participate in the potential future growth of the company. One does not convert into a bond
