Stocks and Bonds – General Mathematics Notes
1. Introduction to Stocks and Bonds
Stocks and bonds are investment options in the financial market.
Stocks represent ownership in a company.
Bonds represent a loan made to a company or government.
2. Stocks
What is a Stock?
A stock (also called a share) represents partial ownership in a company.
Investors (shareholders) buy stocks to earn profits from a company’s
success.
Types of Stocks:
Common Stocks-Gives voting rights in company decisions.
Shareholders receive dividends (profits) but are not guaranteed.
Preferred Stocks-No voting rights but higher priority in receiving dividends.
More stable compared to common stocks.
Stock Market and Stock Exchange:
Stocks are bought and sold in the stock market.
Examples of stock exchanges:
New York Stock Exchange (NYSE)
Nasdaq
Philippine Stock Exchange (PSE)
1. Introduction to Stocks and Bonds
Stocks and bonds are investment options in the financial market.
Stocks represent ownership in a company.
Bonds represent a loan made to a company or government.
2. Stocks
What is a Stock?
A stock (also called a share) represents partial ownership in a company.
Investors (shareholders) buy stocks to earn profits from a company’s
success.
Types of Stocks:
Common Stocks-Gives voting rights in company decisions.
Shareholders receive dividends (profits) but are not guaranteed.
Preferred Stocks-No voting rights but higher priority in receiving dividends.
More stable compared to common stocks.
Stock Market and Stock Exchange:
Stocks are bought and sold in the stock market.
Examples of stock exchanges:
New York Stock Exchange (NYSE)
Nasdaq
Philippine Stock Exchange (PSE)