I.When people buy stock, is there a guarantee that they will receive dividends or thatthey will be able to sell the stock at a price higher than the price they paid for it?J. If there is no guarantee, why are people willing to buy stock?

J. Despite the lack of guarantees, people are willing to buy stock for several reasons: Potential…

Answered: I. When people buy stock, is there a…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 11E

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Similar questions

If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to cant out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.
Which of the following is NOT represented in a stock and flow diagram? O a. Levels b. Rates c. Constants d. Flows e. Sources f. None of the above
What are the functions of stock exchanges in the economy? Please explain?
What are the functions of stock exchanges in the economy?
19. Which is the correct bar chart if the stock's opening price is PI5, closing price is P25, highest price is P30, and lowest price is P10? a. d.
why do stock prices constantly change? Doesn’t this go against the law of supply and demand?
Which type of financial intermediary provides individual investors with professional management of their money and diversification in order to limit the risk of investing? A. mutual funds B. insurance companies C. hedge funds D. investment banks
How economy plays a vital role in controlling stock prices.
What percentage of households in the United States own corporate stock, either directly or indirectly? a. 15 percent b. 25 percent c. 50 percent d. 30 percent e. 20 percent
Yasmeen purchased stock on January 30, 2017. If she wishes to achieve a long-term holding period, what is the first date that she can sell the stock as a long-term gain? a. July 31, 2017 b. July 30, 2017 c. February 1, 2018 d. January 20, 2018 e. January 31, 2018
If a corporation has $400 million in common stock, $200 million in preferred stock, and $500 million in bonds, A. How much is its capitalization?B.Theoretically, how much would it take to control it? C. Practically, how much would it take to control it?
As and example of a possible investment restriction, an insurer mah only be allowed to invest up to 20 percent of its assets in common stock. What penalty is imposed upon the insurer that invests 30 percent of available assets in common stock?A. The additional 10 percent must be disposed of by year endB. The state regulators would impose a 10 percent fine on the insurer.C. The additional 10 percent would be a nonadmitted asset.D. The additional 10 percent would only be listed at cost.

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I. When people buy stock, is there a guarantee that they will receive dividends or that they will be able to sell the stock at a price higher than the price they paid for it? J. If there is no guarantee, why are people willing to buy stock?