Chapter 1

Chapter 1 - Name: Nguyen Thi Lan Thanh Student ID: 1236311...

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Name: Nguyen Thi Lan Thanh Student ID: 1236311 Chapter 1 1.1/ If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met? If you bought a share of stock, I would expect to receive dividends. I would choose a suitable time to buy or sell share of stocks. For example, when the price of stock decreases and intrinsic value of stock increases in the future, I should buy it. If the price of stock increases and intrinsic value stock decreases in the future, I should not buy and contrary I am holding on it , I should sell it to avoid losing everything. No, I would not be certain that my expectation would be met. Whatever I expected is not at all certain: I may expect a decent profit and lose everything, or expect a minor loss and end up making millions. 1.7/ If a company’s board of directors wants management to maximize shareholder wealth,
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Chapter 1 - Name: Nguyen Thi Lan Thanh Student ID: 1236311...

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