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SIE Exam State Farm
- Exam (elaborations) • 7 pages • 2023
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Define Stock 
They are also called equities & represent ownership in companies and are issued by corporations. 
Bonds 
1. Also called debt or sometimes notes. They can be issued by a corporation or government entity. The owner 
is the lender issuer is the debtor. 
Characteristics of Common Stock 
1. All companies issue common stock. 
2. Ownership position 
3. Most Junior all securities. 
Why Purchase Common Stock? 
1. Capital Gains (BUY LOW SELL HIGH) 
2. Dividends. 
Growth Stock 
Mainly used fo...
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