20 Investment in Stock

20 Investment in Stock - Prentice-Hall Inc Chapter 13...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Prentice-Hall, Inc. 1 Chapter 13 Investing in Stocks Basics of Investing in Stocks ± Stock is a share in the ownership of a company. ² Why would a company offer this ?? ± Stock represents a claim on the company's ____ and ________. ± Whether you say ______, _______, or stock, it all means the same thing. Company ownership. ± One vote per share to elect the __________________________ at annual meetings is the extent to which you have a say in the company. ± Just because you have shares in Barnes and Noble does not mean you can go help yourself to free books! Stock Certificate ± A fancy piece of paper proves your ownership. ± In today's computer age your brokerage age, your brokerage keeps these records electronically. Stock Basics: Buying Stocks ± 1. Using a Brokerage firm ² Full Service Brokers ² Discount Brokers ± 2. DRIPs & DIPs ² Dividend Reinvestment Plans (DRIPs) and; ² Direct Investment Plans (DIPs) are plans with which individual companies for a minimal cost, allow shareholders to purchase stock directly from the company. Brokerage firms ± Charles Schwab ± Fidelity ± Banc of America ± Merrill Lynch ± http://www.biospace.com/investor/broker age_ratings.cfm
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Prentice-Hall, Inc. 2 When Brokerage firms go bust. . ± Customer’s accounts are generally safe, they can’t be liquidated to save the firm. ² Securities Investment Protection Corp (SIPC) ± Recent examples: ² Bear Sterns was bought by J.P. Morgan ² Lehman Brothers filed for bankruptcy Why Consider Stocks? ± Over time, common stocks __________ all other investments. ± Stocks reduce ____________ through diversification. ± Stocks are fairly __________.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/06/2011 for the course HACE 3200 taught by Professor B during the Spring '09 term at UGA.

Page1 / 6

20 Investment in Stock - Prentice-Hall Inc Chapter 13...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online