Stocks or Equities (Chapter 7)

1.How do stocks differ from bonds with regard to maturities, voting rights, forms of future cash flows and claims against the

corporation?

2.What do the Bid and Ask prices for stocks represent?

3. Bid & Ask prices: Who pays which price in the transaction between investors and dealers?

4. What is meant by a bull or bear market; bid-ask spreads; and limited liability?

5. What are the forms of future cash flows that investors in stocks might receive?

6. What are the 3 basic types of stock pricing problems?

7.

Ceteris paribus, how does the (constant) dividend growth rate affect a stock's market price?