is common stock decrease debit or credit?

Q: which of the following is a temporary account?  -preferred stock -dividends -retained earnings

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Common stock has par value, and market value. Explain briefly these values. Which one is most…

A: Par value of common stock : Par value corresponds to the equity valuation specified in the corporate…

Q: What is the difference between common stock, preferred stock, and treasury stock?

A: The company can raise money from the investors by issuing the common stock or preference stock.…

Q: How does preferred stock differ from common stock?

A: Capital Stock of CorporationCapital stock is issued by the corporation to raise funds from the…

Q: how does diversification prevent individual stock prices from going down

A: Diversification is a method that mixes a wide variety of investments within a portfolio. By doing…

Q: In what ways is preferred stock like long-term debt? In what ways is it like equity?

A: Preferred stocks are issued to raise capital for the firm. Other forms of fund raising methods are…

Q: s it true of false that stock sold for amounts in excess of par value results in a gain reported on…

A: A company issues its common stock at par value or at an amount more than the par value. The amount…

Q: Why might the stock price changing make sense within the context of risk and return?

A: Stock price movement is dependent on various factors which would eventually impact the required rate…

Q: What is treasury stock and what type of account is it?

A: Lets understand from the basics. Company issue shares to public for the obtaining capital from them.…

Q: How does forward pe effect the stock market?

A: P/E refers to the price earnings ratio. It is one of the important valuation metrics that we use in…

Q: Would a typical common stock provide cash flows more like an annuity or more likean uneven cash flow…

A: Common stock is an instrument that is the property of a company. Common stock investors elect the…

Q: how do the upward trend and downward trend of share price(stock price changes) relates to the market…

A: Market Efficiency - A market is efficient when such  market is characterized by perfect and…

Q: What is meant by par value, and what is its significance to stockholders?

A: Par Value Par value is also known as face value. Par value is the value which is mention on the…

Q: Return formula for common stock?

A: Applying capital asset pricing model (CAPM),

Q: What happens to the price of a stock when the stock goes “ex-dividend”? a) it decreases…

A: Ex dividend date is the cut off date to purchase a stock. Investor who purchased stock on ex…

Q: n the general stock and bond markets lead to changes in the required rate of return on a firm’s…

A: Step 1 The required reimbursement rate is the minimum refund that an investor will receive from…

Q: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: What is stock receipt? What consideration should be taken in the stock receipt?

A: Receipts are a legal document that serves as documentation of a financial transaction or purchase.…

Q: What kind of account is treasury stock and what does it mean?

A: Lets understand from the basics. Company issue shares to public for the obtaining capital from them.…

Q: What does it indicate when there are outstanding units of stock

A: Share of a Stock are outstanding implies that the specified number of share of the stock have been…

Q: Explain which has a stronger effect on stock prices, the change in the interest rate or the…

A: Stock is one of the major securities issued by the companies and an important financial indicator…

Q: Explain the difference between expected rate of return, required rate of return, and historical rate…

A: Return Return is also referred to as the money lost or made over a specific period of time. It can…

Q: When does reverse stock split occurs?

A: Stock split means reducing the face value of single share. For example, A share of $100 will be…

Q: Why is this statement false. Small stock dividends are accounted for at the stock's par value.

A: This statement is false because: "A small stock dividend are accounted for at market price on the…

Q: According to the signaling theory, issuing common stock is negatively perceived. Is this true or…

A: Signaling theory focuses on how issue of debt and equity are perceived by the investors and how…

Q: Are stock prices affected more by long-term or short-termperformance? Explain.

A: Answer: The stock prices are influenced by results in both the long and the short term. The…

Q: What is the difference between book value per share of common stock and market value per share? Why…

A: Book Value per share: Book value per share can be calculated as follows: BVPS =   Total Equity −…

Q: Would a typical common stock provide cash flows like an annuity or more like an uneven cash flow…

A: Common Stock is a security that represents ownership in a firm. Common stock holder can earn returns…

Q: Is preferred stock comparable to long-term debt in any way? Is it comparable to equity in any way?

A: Preferred stocks are the form of shares being issued by a company for increasing its capital. The…

Q: If most participants in the stock market do not follow what is happening to monetary aggregates,…

A: Stock market is the place where various financial securities such as common stocks, preference…

Q: Is Preferred stock a hybrid between common stock and debt? Explain how?

A: Answer: Preferred stock is identified with a preferred name. Preference stock is often granted…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

Q: Which one of the following methods is not derived from the principle that the value of a stock is…

A: The valuation methods can be divided into discounted cash flows method and the comparables method.

Q: How does authorized stock differ from outstanding stock?

A: Outstanding stock: The total number of shares that are authorized and issued by a public company,…

Q: Why are flotation costs higher for stock than for debt?

A: Floatation cost is the cost that the company has to bear when it issues new securities in the…

Q: When treasury stock is purchased for cash at more than its par value, what is the effect on total…

A: Answer) The correct answer in the given question is (b): Cost Method: DECREASE Par Value Method:…

Q: What is margin requirement (for stock)?

A: While trading for the investments in the stock market, there are two methods through which investors…

Q: How would you use these to evaluate whether or not a current stock price is perhaps to high…

A: The term stock price refers to the current market price of a share of stock, and every…

Q: what does the term par value of stock mean

A: The company will issue shares to the public for raising the capital for the company. The company can…

Q: circumstance the Dividend Discount Model (DDM) cannot be used to determine the price of a stock

A: Dividend discount model It is generally utilized by investors for the measurement of the value of…

Q: Are stock values more affected by short-term cash flows or bylong-term cash flows?

A: Cash flows refers to the net amount of cash transfers within the business entity either in the form…

Q: why is this statement false? Small and large stock dividends have no effect on the Common Stock…

A:

Q: Why Are Stock PricesSo Volatile?

A: The prices of stocks listed on stock exchanges are dynamic and change every minute. Volatility is…