Compare And Contrast 5 Different Strategies For Investing In Securities Case Study

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Describe the basic rights of common stockholders. What are the key differences between common and preferred stock? Common stock is the basic form of ownership in a corporation. Their rights are voting rights, right to dividends, capital gains, preemptive right, and right to a residual claim on assets. Preferred stock is gives its holder performance over common stockholders. 2. Describe the basic features and characteristics of bonds. How can bonds be secured? Explain why bonds carry a certain risk? A bond is a formal debt from a government or corporation. A bond that comes at a high risk is ones that carry high value with risky investments. The coupon rate tells the value of the bond. 3. What is the key difference between the primary and secondary…show more content…
Primary securities are newly issued securities that are traded. The primary market is where the firms that issue security raise additional financial capital. The trades that occur on a secondary trade are public offering and private placement. 4. Compare and contrast 5 different strategies for investing in securities. Investing for income this is a low risk and is not a good idea for young people who are trying to grow their wealth. This is for the older retired group. Market trainings are where people watch the market to see when it rises and falls. This requires frequent trades. Value investing- people find these stocks that are no high in value but knows their value. They will be held till the value rises then they will be sold at current market price. Bad part is investors will buy these up and drive up the price. Investing for growth investors look for slow growing companies and invest. They know these companies will start slow, but grow bigger over time. Buying and holding investors hold these stocks over time and put their faith in the overall market. This is a buy and hold strategy. 5. Describe and compare mutual funds and exchange traded funds. Why do such funds appeal to

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