Voting Rights. Some companies, such as google, have created classes of stock with no voting rights at all. Why would investors buy such stock?

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: iscuss the benefits an

A: Introduction : A public company refers to a company where there are many shareholders and the shares…

Q: Which of the following is a characteristic of preferred stock? A. Give voting rights to its owner.…

A: Preferred Stock: They are the combination of equity shares and debt components of capital structure.…

Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: It is the decision taken by board of directors whether to issue preference shares/stock.

Q: . On the day an IPO comes out, the market pricecan rise above the offering price or fall below…

A: Leaving the money in the table refer to deliberate under-pricing of stocks in initial public…

Q: How is it possible for an employee stock option to be valuable even if the firm’s stock price fails…

A: Employee stock option is an instrument granted to the employees of the company (mostly to the…

Q: If a company’s market price rises above the IPO price, does that suggest that the company left money…

A: An initial public offering refers to the new or fresh issue of stock to a group of investors.…

Q: If stock dividends and stock splits don't give shareholders significant value/ amount, why do you…

A: Every publicly listed company has a defined amount of existing shares. A stock split is a measure…

Q: Companies sell common stock to raise long-term capital. What are the pros and cons of selling stock?…

A: Common Stock : Common stock is a type of security that represents ownership of equity in a company.…

Q: Most firms like to have their stock selling at a high P/E ratio, and they also like to haveextensive…

A: Answer: Many investors use the dividend discount model to calculate stock price, which states…

Q: Before you put your money down and purchase a stock, what should you know about it?

A: An investor must consider certain factors which are necessary to make decision whether to buy the…

Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: Disclaimer:   “Since you have asked multiple question, we will solve the first question for you. If…

Q: hy would a company choose to not pay dividends on its common stock?

A: Dividends are the return earned by the shareholders in lieu of the amount invested in company's…

Q: Many executives own shares in the companies they manage and are also in high tax brackets. When…

A: Here there is a conflict of interest between the owners (i.e. the shareholders) and the agents (the…

Q: Why do firms still do stock dividends and stock splits if it doesn't give shareholders much value…

A:

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: Historically, technology firms have been the most aggressive users of stock-based compensation   in…

A: Common stock refers to the equity security of a company. Common stock gives the right to vote and…

Q: Describe what is IPO and what is involved in the IPO process. Do you think that it is better to buy…

A: IPO is initial public offering that means the company in this shares of company are sold to common…

Q: Stock Valuation A substantial percentage of the companies listed on the NYSE and the NASDAQ don’t…

A: The periodic payment paid by the company to shareholders is called dividends. The dividend is a way…

Q: Does the concept of limited liability make owning stocks more or less attractive? Explain.

A: Limited liability makes it much more attractive to purchase stock (equities). Limited liability…

Q: 1 If you want to protect stock you own , would you buy a put or a call?

A: Put option stock should be bought.

Q: A retiree believes that investing in a non-dividend paying growth firm, which requires the periodic…

A: A growth firm is a firm with significant profits and cash flows that shows a much higher return than…

Q: What is a stock split? How does a stock split affect the market value of a share of stock? What is a…

A: Company Stock: These are representations of the claim of ownership on the assets and company…

Q: RDJ Berhad believes that its disadvantage of issuing preferred stock is

A: The preferred stock gets the fixed payment by the company but the company does not provide them a…

Q: If stock dividends and stock splits don't give shareholders much value, why do you think companies…

A: Stock split involves increasing the number of shares outstanding of the corporate entity by issuing…

Q: A stockbroker advises a client to “buy preferred stock. . . . With that type of stock, . . . [you]…

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Q: When a company participates in a stock buyback program, it means that the company is buying shares…

A: The Earnings per Share is the net income earned by each share of the company. EPS is computed by…

Q: Why is a dissenting stockholder who demands payment of his shares no longer allowed to withdraw from…

A: S…

Q: What are some of the reasons why investors post IPOs into the primary markets?

A: An initial public offering occurs when a private firm sells its first shares of stock to the general…

Q: Why would angel investors help finance companies privately, rather than buying shares of publicly…

A: An angle investor is a private investor who facilitates start companies and small business men by…

Q: What is a stock split? As an investor, would youlike to see shares you own be split?

A: A stock split is when a firm increases the number of outstanding shares. This does not affect the…