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Unformatted text preview: Preferred Stock Common Stock A mutual fund is a sample of stocks that many investors invest their money into mutually. The fund is then managed by an expert. By purchasing a share in a mutual fund you are purchasing a part of a share in many different stocks. 5. What is the PE ratio? What is the formula for finding the PE ration? Price-Earnings Ratio. PE Ratio = Closing Price per share/Annual net income per share 6. Summarize the basic concepts of bonds. Bonds are legally binding promises to repay borrowed money at a specific date in the future. Corporations commonly pay interest on each bond each year. Unlike shareholders, bondholders do not own part of the corporation....
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This note was uploaded on 12/30/2009 for the course MATH 1220 taught by Professor Roarty during the Spring '09 term at Metropolitan Community College- Omaha.
- Spring '09