ch18-pp - Types of Securities Investments Three Major...

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Types of Securities Investments Stocks Common Stocks Preferred Stocks Bonds Options Other Investments Commodities Three Major Securities Investments
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Common Stock Ownership interest in a publicly traded corporation. Shareholders of this class of stock vote to: Elect the company’s board of directors. Vote on their important corporate issues. Receive dividends (payments from the company’s profits).
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Preferred Stock Higher dividends and better claim on assets if the corporation fails. Amount of dividend is set when the stock is first issued. The amount of dividend is printed on the stock certificate. As interest rates fluctuate, the market price of preferred stock will go up or down. Often comes with special privileges.
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Bonds are debt financing. A bond is a method of raising money. Usually issues in multiples of $1000. Interest rate usually paid in 6-month intervals.
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ch18-pp - Types of Securities Investments Three Major...

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