Description
---More in need of helping write a introduction. Don't nessicarly need help with the rest of paper! I have been stumped!
Evaluate the following in a response:
- Characteristics of common and preferred stock.
- How stock markets work.
- The connection between the value of shares and dividends.
- Mention the ticker symbol of the company studied, the current price of the stock, and its financial history.
- Indicate if you would recommend investing in this stock and why. Explain.
Format your paper consistent with APA guidelines.
Explanation & Answer
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Running head: STOCK VALUATION
1
Stock Valuation
Institution Affiliation
Instructor’s Name
Student’s Name
Course Code
Date
STOCK VALUATION
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Stock valuation
Features of common and preferred stock
Common stock in the company has the representation of the ownership of the company.
Any given share of the common stock gives an equal amount of ownership of that. They are
characteristic by the right to be sold in the secondary stock exchange markets by a private or
public transaction. The holders of common stock have the right to dividends one the board in that
organization have passed it. They also have the right to vote in the annual stockholders meeting.
The common stock has the right to the assets of the company in case the company has been
adjourned (Ivković, & Weisbenner, 2005).
Preferred stocks give the holders the right to ownership of the firm. This stock has no
voting right in the annual general meetings. It is characterized by a fixed dividend in that
whether the company is doing well or not there is a specified amount of dividend that the holder
receives. They are callable this means that they can be determined when the maturity id due.
They are convertible this means that this sticks can be converted into common stock anytime.
They are redeemable this means that this stocks can be recovered in the case of a company
liquidation. The holders have precedence over th...