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WK 6 DQ - I do not foresee myself as an eventual...

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Already posted but for records, just in case: DQ 1 - If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the distribution between the dividend yield and the capital gain yield be influenced by the firm's decision to pay more dividends rather than to retain and reinvest more of its earnings? Explain. Technically, I don’t believe it’s the “firm’s” decision to pay dividends rather than to retain and reinvest earnings. I believe that decision is left to the Board of Directors. I do believe that the Boards decision to retain or distribute would directly affect the amount of gain shared with stockholders. Along with an individuals percentage of holdings being directly related to the amount of gain received after a distribution has been declared. DQ 2 -Explain you strategy for purchasing a stock. In addition, explain your strategy for determining the sale of that stock.
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Unformatted text preview: I do not foresee myself as an eventual stockholder in any situation. I prefer to have more control over my money and saving my pennies in a jar is a lot more appealing to me than risking my hard earned money on the stock market. That said, hypothetically speaking, I would (as I did with my portfolio for this class) would choose stocks to purchase based on a number of factors including but not limited to my willingness to financially support and invest in a company based on its reputation and political standing and practices. For example, I would never invest in Wal-mart because of its hiring and labor practices. I would want to learn about the company and the people who run it before investing. Likewise, and conversely, poor judgment on the part of management and executives who run said company are expected to be impeccable. Should they falter, my support would wane and the immediate sale of said stock would be imminent....
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