2/4/25, 6:29 PM AFM 121 FINAL EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | LATEST VERSION Flashc…
AFM 121 FINAL EXAM 2025 | ALL QUESTIONS
AND CORRECT ANSWERS | ALREADY GRADED
A+ | LATEST VERSION
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Terms in this set (139)
Provides cash payments/dividends
These payments/dividends are fixed; hence, preferred
What are preferred shares
shares are often viewed as fixed income not equity
Most attractive to investor who wants a steady income
https://quizlet.com/1001333324/afm-121-final-exam-2025-all-questions-and-correct-answers-already-graded-a-latest-version-flash-cards/?new 1/11
, 2/4/25, 6:29 PM AFM 121 FINAL EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | LATEST VERSION Flashc…
A company splits its shares thereby doubling (or
tripling) its shares outstanding (in a 2 for 1 stock split,
the share price is halved)
What is a stock split?
Note****A stock split does not increase a company's
market capitlization
You must purchase a stock BEFORE the ex. dividend
What happens on ex. date to receive the next dividend payment. On this
dividend date? date, the stock price declines by the amount the
dividend is being paid is.
What happens on the Shareholders will receive the dividend amount.
record date?
The company decides to issue a stock, rather than
What is a stock dividend?
cash
Divident Reinvestment Plan
What is a DRIP?
The investor decides to receive stock, rather than a
cash dividend
What is multi-voting Each share they own comes with it 10 votes instead of
shares? 1 share for 1 vote for restricted voting shares
Do dividends receive a tax Yes
credit?
How much do capital 50%
gains get taxed?
What is a stock's 'close'? Last trading price of the day
What is a stock's 'change'? Change from previous day's close
What is a stock's 'volume'? # of shares traded during the period
Which type of dividends Preferred then common
are paid first?
https://quizlet.com/1001333324/afm-121-final-exam-2025-all-questions-and-correct-answers-already-graded-a-latest-version-flash-cards/?new 2/11
AFM 121 FINAL EXAM 2025 | ALL QUESTIONS
AND CORRECT ANSWERS | ALREADY GRADED
A+ | LATEST VERSION
Save
Practice questions for this set
Learn
Studied 7 terms
Nice work, you're crushing it
Continue studying in Learn
Terms in this set (139)
Provides cash payments/dividends
These payments/dividends are fixed; hence, preferred
What are preferred shares
shares are often viewed as fixed income not equity
Most attractive to investor who wants a steady income
https://quizlet.com/1001333324/afm-121-final-exam-2025-all-questions-and-correct-answers-already-graded-a-latest-version-flash-cards/?new 1/11
, 2/4/25, 6:29 PM AFM 121 FINAL EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | LATEST VERSION Flashc…
A company splits its shares thereby doubling (or
tripling) its shares outstanding (in a 2 for 1 stock split,
the share price is halved)
What is a stock split?
Note****A stock split does not increase a company's
market capitlization
You must purchase a stock BEFORE the ex. dividend
What happens on ex. date to receive the next dividend payment. On this
dividend date? date, the stock price declines by the amount the
dividend is being paid is.
What happens on the Shareholders will receive the dividend amount.
record date?
The company decides to issue a stock, rather than
What is a stock dividend?
cash
Divident Reinvestment Plan
What is a DRIP?
The investor decides to receive stock, rather than a
cash dividend
What is multi-voting Each share they own comes with it 10 votes instead of
shares? 1 share for 1 vote for restricted voting shares
Do dividends receive a tax Yes
credit?
How much do capital 50%
gains get taxed?
What is a stock's 'close'? Last trading price of the day
What is a stock's 'change'? Change from previous day's close
What is a stock's 'volume'? # of shares traded during the period
Which type of dividends Preferred then common
are paid first?
https://quizlet.com/1001333324/afm-121-final-exam-2025-all-questions-and-correct-answers-already-graded-a-latest-version-flash-cards/?new 2/11
