Peregrine Exam Review Day 1 Questions & Answers Solved 100% Correct!!

Balance Sheet Analysis - Analysis of assets, liabilities, and equity Annually or quarterly Helpful for investors, bankers and brokers Compliance in Accounting - Sarbanes act was created in 2002 to protect shareholders What are dividends? - a sum of money paid regularly by a company to its shareholders out of its profits _ can be allocated as fixed amount per share - Dividends Dividends - can only be received one or more regular payment stream Cash dividend - paid out of currency of the company Are usually taxable stock dividend - Paid out in form of stock Property - paid out in form of asset Interim - made before a companies annual general meeting and final financial statement Common stock - allows owners to vote at shareholder meetings and receive dividendspreffered stock - stock that gives stockholders preference in earnings and other rights Growth stock - earnings grow faster than market average Dividends rarely paid Investors buy them Startup technology company likely has them Income stock - pays higher-than-average dividends compared to other stock issues Value stock - stock from a company which has a low market price considering historical earning records and value of current assets Blue Chip Stock - the stock of a large, well-established and financially sound company that has operated for many years Owners of bonds are - Debt holders, creditors and issuer Bonds usually have - variable or fixed interest payments Bonds are correlated with - inverse interest rates T/F Bonds have maturity rates - T Bonds must be - paid back in full or risk default