Chapter 21 - Stocks, bonds, and mutual funds. In this chapter, the learning objectives are: Read, calculate, and explain stock quotations; calculate dividends of preferred and common stocks; calculate return on investment; read, calculate, and explain bond quotations; compare bond yields to bond premiums and discounts; explain and calculate net asset and mutual fund commissions; read and explain mutual fund quotations. | Chapter 21 Stocks, Bonds, and Mutual Funds Read and explain stock quotations Calculate dividends of preferred and common stocks; calculate return on investment Stocks, Bonds, and Mutual Funds #21 Learning Unit Objectives Stocks Read and explain bond quotations Compare bond yields to bond premiums and discounts Stocks, Bonds, and Mutual Funds #21 Learning Unit Objectives Bonds Explain and calculate net asset and mutual fund commissions Read and explain mutual fund quotations Stocks, Bonds, and Mutual Funds #21 Learning Unit Objectives Mutual Funds Cumulative preferred stock - entitles its owners to a specific amount of dividends in 1 year Stock - Shares of ownership in a company Common Stock - Stock that allows owners to have voting rights Stocks Preferred Stock - Does not allow voting rights, but gives preference over common stockholders in dividends Stocks Dividends - Payments to shareholders from profit Dividends in arrears - Payments owed | Chapter 21 Stocks, Bonds, and Mutual Funds Read and explain stock quotations Calculate dividends of preferred and common stocks; calculate return on investment Stocks, Bonds, and Mutual Funds #21 Learning Unit Objectives Stocks Read and explain bond quotations Compare bond yields to bond premiums and discounts Stocks, Bonds, and Mutual Funds #21 Learning Unit Objectives Bonds Explain and calculate net asset and mutual fund commissions Read and explain mutual fund quotations Stocks, Bonds, and Mutual Funds #21 Learning Unit Objectives Mutual Funds Cumulative preferred stock - entitles its owners to a specific amount of dividends in 1 year Stock - Shares of ownership in a company Common Stock - Stock that allows owners to have voting rights Stocks Preferred Stock - Does not allow voting rights, but gives preference over common stockholders in dividends Stocks Dividends - Payments to shareholders from profit Dividends in arrears - Payments owed to cumulative preferred shareholders Stockholders Elect Board of Directors Elect Officers of Corporation How Stocks Are Traded Stockbrokers - people who buy and sell stock on the floor of the exchanges. They charge a commission for trading stocks. Stock exchanges - An orderly trading place for stock. Stock Quotations in Newspaper’s 52 weeks YLD VOL NET HI LO STOCK (SYM) DIV % PE 100s CLOSE CHG General Electric (GE) 75,537 PE Ratio = Closing price per share of stock = $ = Annual earnings per share $ Earnings per share = Annual earnings . Total number of shares outstanding Stock Quotation Calculations Stock yield = Annual dividend per share = $ = Today’s closing price per share $ *Earnings Per Share are not listed on the stock quote Dividends on Preferred and Common Stock The stock records of Jason Corporation show the following : Preferred stock issued: 20,000 shares. In 2011, Jason paid no dividends .
