7-Final Flashcards
(17 cards)
Common Stock
voting right, growth potential, variable dividends, lower claim priority
Preferred Stock
no voting, fixed dividends, higher claim priority, less growth
Dividend Yield
dividend yield = annual dividend / stock price
Capital Gains Yield
capital gains yield = price increase / original price
How does Dividend Yield and Capital Gains Yield apply to Real Rate
Total Return = Dividend Yield + Capital Gains Yield
Common Stock
gives ownership + voting rights
Straight Voting
favors large shareholders
Cumulative Voting
increases minority shareholder influence
Staggering Voting
a shareholder may cast all votes for each member of a board of directors
Proxy Voting
grant of authority of a shareholder for another party to cast their vote in their stead
Stock Markets
a place where buyers and sellers trade stocks
NYSE
auction-based, physical + electronic, one DMM per stock
NASDAQ
electronic, multiple markets, tech-heavy
Market Makers
keep trading smooth by always being ready to buy/sell
Stocks
ownership, higher risk, higher reward
Bonds
lending, lower risk, steady income
Metrics put into place to limit trading if the market falls by a certain percentage
Circuit breakers pause trading when the market drops 7%, 13%, or 20%. They help prevent market crashes caused by panic or automation. Especially important in times of economic uncertainty or major news events
