首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Stock, in business and finance, is a share of ownership in a corporation. Shares in a corporation can be bought and sold, usuall
Stock, in business and finance, is a share of ownership in a corporation. Shares in a corporation can be bought and sold, usuall
admin
2010-09-10
95
问题
Stock, in business and finance, is a share of ownership in a corporation. Shares in a corporation can be bought and sold, usually on a public stock exchange. Consequently, the owner of shares can realize a profit or capital gain if the stock is sold at a price above what the owner originally paid for it.
Some companies enable stockholders to share in the profits of the company. These payments of corporate profits to stockholders are called dividends. In addition to having a claim on company profits, stockholders are entitled to share in the sale of the company if it is dissolved. They may also vote in person or by proxy on a variety of corporate matters, including the most important matter of who should run the corporation. When the company issues new stock, stockholders have priority to buy a certain number of shares before they are offered for public sale. Stockholders also receive periodic reports, usually quarterly, that provide information regarding the corporation’s business performance. Stocks generally are negotiable, which means stockholders have the right to assign or transfer their shares to another individual.
A stockholder is considered a business owner and has the protection of limited liability under United States laws. Limited liability means that a stockholder is not personally liable for the debts of the corporation. The most a stockholder can lose if the company fails is the amount of his or her investment -- what he or she originally paid for the stock. This arrangement differs from that of other forms of business organization, which are known as sole proprietorships and partnerships. These business owners are personally liable for the debts of their businesses.
Corporations have good reasons to issue stocks. They issue stock in order to finance their business activities. This method of raising funds is only available to business firms organized as corporations; it is not available to sole proprietorships and partnerships. The corporation can use the proceeds of a stock offering in a variety of ways. Depending on the type of company, this might involve increasing research and development operations, purchasing new equipment, opening new facilities or improving old ones, or hiring new employees.
An alternative to stock financing is debt financing or the sale of bonds, an interest-bearing loan. This alternative is also available to sole proprietorships and partnerships. With the issuance of a bond a company typically promises to make periodic interest payments to the lender or bondholder as well as pay back the amount of the bond when the term of the bond comes to an end. Thus bonds are evidence of loans while stocks are evidence of ownership. Stocks and bonds are collectively known as securities.
When a corporation first makes stock available for public purchase, it works with an investment banking firm to arrange an initial public offering (IPO). The investment bank acquires the first issue of stocks from the corporation at a negotiated price, and then makes the shares available for sale to its clients and other investors.
A corporation can only have one IPO -- the first time it makes stock available to the public. After its IPO, a company is said to be public. Public corporations that need additional financing for further business development may choose to issue more stock at a later time. This is called a subsequent, or follow-on, offering.
Some corporations may choose not to go public. In this case it is said to be a privately held corporation. A corporation may elect to remain private because it docs not want to share its profits, or it may not want to give up control to shareholders.
Most of the information reported in the daily news media about the buying and selling of stock refers to transactions involving previously issued stock. The daily buying and selling of stock rarely involves IPOs. Almost all stock transactions are "second-hand transactions." The corporation that initially issued the stock is not directly involved.
A corporation’s capitalized value refers to the market value of the stock that it has issued and that remains outstanding -- that is, available for sale or purchase. A corporation’ s capitalized value may be greater or less than its book value. Book value is the value of the corporation’ s assets as reflected in its accounting statements -- that is, on its books. Capitalized value may also be greater or less than the corporation’s replacement value, the amount that it would take to replace all of the corporation’s assets.
Corporations will sometimes split their stock. This means the corporation replaces outstanding shares with new shares on some multiple basis, such as a two-for-one or three for-one split. When a corporation splits its stock, it does not obtain any new funding. Splits usually occur when the market price of shares is deemed too high by corporate management. With a split the price of shares falls, making purchase by smaller investors more affordable. Keeping a stock relatively affordable for smaller investors makes it easier for a corporation to raise money with a follow-on stock offering.
Why People Buy Stock? Economic gain represents the primary motive for the purchase of stock. The gain or return from stock consists of two parts: dividends, the periodic payments made from profits, and appreciation, the capital gain realized from selling a stock for more than its purchase price.
An investor really has only two choices in acquiring the financial assets of a corporation -- buying stocks or bonds. As a financial claim against a company, bonds take precedence over all types of stock. Thus, they are a safer investment than stocks, especially in times of deflation (a period when the prices of goods and services are generally falling). Stocks, however, are usually the better investment during periods of inflation (a period when the prices of goods and services are generally rising) because they represent ownership of assets that will probably rise in value as fast as or faster than prices in general. Bemuse the dollar value of bonds is fixed, they cannot serve as a hedge or protection against inflation as do common stocks.
Buying stocks is a better investing way compared with bonds when the purchasing power of money increases.
选项
A、Y
B、N
C、NG
答案
B
解析
细节题。文中第13段提到,通货紧缩的时候,债券比股票更加安全,与题文“货币购买力提高的时候,买股票是比买债券更好的投资方式”不符。答案为[N]。
转载请注明原文地址:https://www.kaotiyun.com/show/8P87777K
0
大学英语四级
相关试题推荐
Inrecentyears,moreandmoreforeignersareinvolvedintheteachingprogramsoftheUnitedStates.Bothoftheadvantagesand
Culturereferstothesocialheritageofapeople—thelearnedpatternsforthinking,feelingandactingthatcharacterizeapop
Therearemanyimportantyetordinaryissuesinourlife.Peoplejustneglectthembecausetheyaresocommon.Forexample,many
Noinvestmentoffersabetterreturnthangivingthechildrenthebeststartinlife.ResearchhasshownthatforeveryUS$1sp
Noinvestmentoffersabetterreturnthangivingthechildrenthebeststartinlife.ResearchhasshownthatforeveryUS$1sp
Asresearcherslearnmoreabouthowchildren’sintelligencedevelops,theyare【S1】______surprisedbythepowerofparents.The
A、Criminals.B、Honestpeople.C、Peoplewhoareneitherhonestnorcriminals.D、Peoplewhoarebothcriminalsandliars.C
A、November.B、December.C、June.D、March.A短文第二句明确提到NovemberisNationalAdoptionMonth。
Thename"UnitedNations",coinedbyUnitedStatesPresidentFranklinD.Roosevelt,was【B1】______usedinthe"DeclarationbyUni
Researchonfriendshiphasestablishedanumberoffacts,someinteresting,someevenuseful.Didyouknowthattheaveragestud
随机试题
按循经诊断,在胸前“虚里”处疼痛,痛连左手臂及小指,应考虑
Insteadofresearchingandwritingtheirpapers,somestudents______.Outof300paperscheckedforfakes,______.
胆汁淤积性黄疸时,下列哪项正确
背景资料某施工单位与建设单位签订了路基工程施工承包合同,包括桥涵两座和路基填筑工程,合同工期390天,合同总价5000万元。施工前施工单位向工程师提交了施工组织设计和施工进度计划。该工程在施工过程中发生了以下事件:事件一:因地质勘探报告不详,出现图
能够进行实时套利交易的基金是()。
基金托管人的主要职责是()
请认真阅读下文,并按要求作答。草白居易
(2016·河南)尽管发展的速度可以有个别差异,会加速或延缓,但发展是不可逆的,也不可逾越。这是指学生心理发展的()
设α1,α2,α3,α4,β为4维列向量,A=(α1,α2,α3,α4),若Ax=β的通解为(-1,1,0,2)T+k(1,-1,2,0)T.β能否由α1,α2,α3线性表示?为什么?
在数据库中存储的是
最新回复
(
0
)