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Unformatted text preview: corporation; Common stock: Residual claimants of corporate resources who receive a proportion of profits based upon the ratio of shares held; 3. Bonds: An obligation issued by the corporation that promises the holder to received fixed annual interest payments and payment of the principle upon maturity; 4. Plowbacks or reinvestment: The practice of using corporate profits for capital investment rather than dividend payouts; 11.3 1. Securities: Stocks and bonds; 2. Dividend: The annual per share payment to shareholders based upon realized profits; Price-earnings ratio (PE): A measure of stock value that is Price of stock/ Earning per share;...
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- Spring '09