1. Describe the advantage and disadvantage of owning stock.

1. As a shareholder how many votes are you entitled to?

1. Define primary and secondary markets.

1. Explain an IPO.

1. How do entrepreneurs acquire additional money or capital, for such things as buying new equipment or hiring more employees?

1. What are the disadvantages of issuing stock?

1. What are Stock Dividends?

1. Explain the difference between common and preferred stock.

1. Describe the difference between 'blue chip' and 'penny' stocks.

1. Which is a riskier investment: blue chip or penny stocks. Explain why this is so.

1. What does 'cyclical stocks' mean?

1. Give two examples of a cyclical stock.

1. What is the advantage and disadvantage of investing in cyclical stocks?

1. Explain the term 'price-to-earnings ratio'.

1. How can investing in foreign stocks help an investor diversify his/her portfolio?

1. Summarize the differences between small, medium, and large-cap stocks.

Answer rating: 100% (QA)

Answer 1 Advantage and Disadvantage of Owning Stock Advantage Ownership in a companys stock can provide potential for capital appreciation through stock price appreciation and dividends Disadvantage S... View the full answer