Study Guide Exam 2 - Study Guide Exam 2 Stocks Types of...

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Unformatted text preview: Study Guide Exam 2 Stocks Types of stocks: Common & Preferred Common-voting rights, receives variable dividends Preferred- no voting rights, receives fixed dividends, fixed income option Who rates stocks?- Value Line & Morningstar *Price is an indicator for demand of stock Stock Split- no change in $$ to the shareholder/company-Change in # and price of the shares-2/1 split = 100 shares @$50 now 200 shares @$25. Same value Investments Exchange- something in which stocks are traded in Examples: New York Stock Exchange- Chaotic, done with papers. NASDAQ- all electronically done. AMEX- an American exchange Index- monitors whats happening and what the trends of the exchanges are. DO NOT CONFUSE WITH EXCHANGE! Examples: Dow Jones Industrial Average- only looks at 30 huge companies at a time Standard & Poors- looks at 500 companies NASDAQ- National Association of Security Dealers Automated Quatations (composite) index Prospectus- the goal of a fund, includes fees and a manager Why would an investor read a prospectus?Why would an investor read a prospectus?...
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This note was uploaded on 03/18/2008 for the course FCE 238 taught by Professor Boyce during the Fall '07 term at Michigan State University.

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Study Guide Exam 2 - Study Guide Exam 2 Stocks Types of...

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