FinMktHW5 - Financial Markets & Institutions Module 5...

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Module 5 Homework Page 257: 1) The stock markets are the most watched and reported because they are the focus of our economy, they affect almost everything that goes on financially and it is one of the biggest places for trading and monetary exchanges in the world. 3) It means the stockholders have a claim against whatever assets remain after the preferred stockholders and debt holders have been paid off. 4) A dual-class firm is where a company issues two different types of common stock, with one holding superior voting rights over the other. Firms issue these dual classes when they want to give one group of owners of stock more control over the others. 7) Cumulative preferred stocks will have dividends that aren’t paid carried forward and adds to the next year until it is paid. Non-cumulative preferred stocks will lose dividends that aren’t paid. 10) A market order is an order to buy or sell stock as soon as possible at the best current available price. A limit order is an order placed by a broker to buy or sell a number of shares at a specific price or higher. The stockholder performs it or has a broker take action on the order on the market. 11) A) $63.94 B) C) 2.4 14) The major U.S. stock market indexes are the NASDAQ, Dow Jones and the S&P 500. 18) Circuit breakers are used in the stock market to halt trading or close the
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FinMktHW5 - Financial Markets & Institutions Module 5...

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