Earn income as a stockholder

Reference no: EM13833695

Finance Discussion

Need a 200 to 400 word response. In-line citation(s) and reference(s) in APA format, but the answer itself does NOT have to be in APA format.

Stocks

There are two primary means to earn income as a stockholder. The first method is dividend income and the second method is earnings from capital gains. With respect to the investor seeking dividend income, when the investor buys a stock from a corporation with a primary focus to earn dividend income they will typically expect a higher dividend on common stock versus preferred stock. Discuss the dividend payment requirements of a common stock versus preferred stock, in terms of which type of stock has a primary claim on dividend distributions. Explain why the common stock investor demands a higher dividend rate.

Reference no: EM13833695

Questions Cloud

Periodic and perpetual systems : Question 1: Whether LIFO costing is applied at the time each sale is made or only at the end of the period, both the periodic and perpetual systems will yield the same ending inventory under LIFO.

How many paths are there to the goal : Show your pseudo code for this algorithm. Is this an admissible heuristic function and How many possible states are there? How many paths are there to the goal?

How can a country finance a deficit budget : Explain the concept of deficit spending and clearly demonstrate the Keynesian effects. What are the effects of deficit spending on countries economy? How can a country finance a deficit budget?

Highlight relevant background and job history information : Highlight relevant background and job history information. Emphasize significant qualifications and exclude nonessential ideas.

Earn income as a stockholder : There are two primary means to earn income as a stockholder. The first method is dividend income and the second method is earnings from capital gains. With respect to the investor seeking dividend income, when the investor buys a stock from a corpora..

Determine the annual dps under the following policies : i) Determine the annual DPS under the following policies. ii) A regular dividend of sh. 8 and an extra dividend to bring the payout ratio to 40% if it otherwise would fall below. b) Do you believe it will be justifiable for a company to borrow money ..

Assignment on tax : Fred (age 37) and Susan (age 35) Anderson are married and file a joint income tax return. They have two children, Andy (13) and Shawn (15) who live with them and whom they support. Fred is an accountant at Watkins and Latham, CPA's. Susan is a ..

Negotiation is a soft skill : Negotiation is a soft skill that might just be one of the most important skills you will ever learn. For this discussion you will need to view the videos below to prepare for the rest of the assignment.

Treasury bills and treasury notes : Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury bill matures within one year and investors typically roll over the matured Treasury bill and purchase another Treasury bill the same day. Treasury ..

User Account

All Pages