Fin 101 Stock Review

Fin 101 Stock Review - Fin 101 Stocks! Par Value 1 Legally,...

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Fin 101 – Stocks! Par Value 1 Legally, represents a stockholder’s minimum financial obligation in the event the corporation is liquidated Dividends 1 The firm has no legal obligation to pay common stock dividends Maturity 1 Generally has no specific maturity date Priority to Assets and Earnings 1 Dividends can be paid only after the interest on debt and the preferred dividends are paid Residual owners Control of the Firm (Voting Rights) 1 Common stockholders have the right to elect the firm’s directors and to vote on shareholder’s proposals, mergers, and changes in the firm’s charter Preemptive Right 1 Some stockholders have the right to purchase any additional shares of stock sold by the firm Equity Instruments in International Markets American Depository Receipts 1 Certificates created by banks that represent ownership in stocks of foreign countries Foreign Equity 1 Yankee stock 2 Euro stock
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Stock Valuation Models – Terms stock of share a of pricecurrent by the divided dividend expected thePDˆ
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This note was uploaded on 03/31/2011 for the course FIN 101 taught by Professor Wang during the Spring '11 term at Adelphi.

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Fin 101 Stock Review - Fin 101 Stocks! Par Value 1 Legally,...

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