Monthly Archives: July 2009

Common Stock – Value, Growth, Large, Small?

By Lon Jefferies | Published: July 6, 2009
Common stock (frequently referred to as equity) represents ownership in a corporation. Stock owners participate in the profitability of a company by receiving dividends, which is the distribution of a company’s profits (usually quarterly). As a company grows, its dividends commonly increase, motivating investors to pay more for the stock. This appreciation of a stock’s [...]
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Preferred Stock – Stock or Bond?

By Lon Jefferies | Published: July 2, 2009
Preferred stocks are securities with characteristics of both stocks and bonds. Like a bond, preferred stock has a fixed dividend that it will pay to owners each year. Also like a bond, preferred stock owners do not have the ability to vote on the management of a company. Lastly, because preferred stocks pay a fixed [...]
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What are the Different Types of Bonds?

By Lon Jefferies | Published: July 1, 2009
Various entities issue bonds to borrow money. Of course, corporations issue bonds to increase their cash flow. If a corporation goes bankrupt, it may not be able to repay its outstanding loans. The largest sector of the bond market is U.S. Treasury obligations (treasure bills, notes, and bonds). These securities are backed by the full [...]
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