How do you determine if a stock is over-valued? What does that mean? If a willing buyer and a willing seller agree to buy/sell a share of stock, who can say if the share is over-valued? What are some of the traditional tools to determine if a stock is over-valued or under-valued?

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of the…

Q: All of the following are risks associated with buying stocks, except -- loss of interest payments if…

A: Stocks are based on market demand and supply and it is very volatile and risky.

Q: What is the major reason for a forward stock split?

A: Stock Split: Stock Split is a scheme in which a company’s total number of shares outstanding will…

Q: According to the Signaling Theory, issuance of common stock is a negative sign. Do you agree or…

A: Firm issues different securities to arrange the funds to meet the financial requirements. Debt and…

Q: Can a stockholder reclaim his/her appraisal rights if it has already been waivered due to late…

A: Mergers and Acquisitions is the purchasing of a company's outstanding common stock by other company.…

Q: If you were a stockholder which type of stock would you prefer? Why?

A: The company issues two types of stock i.e. Common stock and Preference stock. Common shareholders…

Q: What is the difference between the dealer and the broker in the stock market? (Explain clearly.)

A: Broker:   A broker is a person who will buy and sell securities for their client.   Dealer:   A…

Q: Why might an investor-owned firm choose to issue different classes of common stock?

A: An investor owned firm issues different classes of common stock mainly due to the difference in…

Q: In theory, only systematic risk matters for the required return of a stock. Why does non-systematic…

A: Systematic risk refers to those which impacts the whole market rather than on particular stock…

Q: For investors, the function of secondary markets is to provide marketability for the shares of…

A: Secondary market is a type of market where investors buy and sell securities or assets from other…

Q: 1.Discuss why might a director argue reliance as a defence to a breach of duty and care?2.Explain…

A: Share helps in representing the unit of an equity ownership in corporation. Shareholders used to…

Q: sed on the Signaling Theory, issuance of common stock is a negative sign.

A: Introduction : In simple words, the signalling theory states that the actions made by the company…

Q: What are the advantages of using restricted stock to compensateemployees?

A: Restricted stock are the shares of a company, which is issued to its employees, but not entirely…

Q: What is a deal (and acquisition) where the buyer's stock fell and the target's stock rose?

A: Acquisition - is the purchase of one company by the another. Example: Purchase of Time Warner by AT…

Q: What is the primary motivation for a forward stock split?

A: Here is the Answer

Q: Companies sell common stock to raise long-term capital. What are the pros and cons of selling stock?…

A: Common Stock : Common stock is a type of security that represents ownership of equity in a company.…

Q: How can an investor benefit from ane equity investment that does not pay dividends?

A: In layman’s words, financial management is the management of the finance or funds in an…

Q: Which of the following is False in regards to Share premium account? a. It will be shown under the…

A: THE SHARE PREMIUM ACCOUNT REPRESENTS THE DIFFERENCE BETWEEN THE PAR VALUE OF THE SHARES ISSUED AND…

Q: Discuss the following statement. Even when shares are sold at a discount, equity rights issues are…

A: Private placement is a way when a company issues share to some pre selected investors before the IPO…

Q: Discuss why stock dividend and stock split are not real dividend issues.

A: A dividend is a circulation of benefits by an organization to its investors. At the point when a…

Q: What is meant by Forfeiture of shares?

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: available-to-sell stock versus a held-to-maturity stock

A: Available-to-sell stock is a type of security that can be bought and sold before maturity.…

Q: Who is responsible for monitoring stock in the stock market? Who issues a stop loss on stocks?…

A: The regulating agencies of stock market are responsible for stock markets monitoring. Different…

Q: Both individuals and companies monitor the stock market. Explain how their reasons for doing so…

A: individual monitor their stock price by the following steps 1) keep updated about the latest news…

Q: It is the board that decides whether a dividend is to be paid or not select an option False True

A: Dividends are payments provided to a corporation’s shareholders when the company makes a profit.…

Q: If we dont have earnings and don't have dividends, how can we figure out what the value of the stock…

A: Determining the value of a stock without earnings or dividends relies on alternative valuation…

Q: When purchasing shares is it preferrable to purchase in anticipation of appreciation or of…

A: When it comes to investing in stocks, there is no one-size-fits-all approach that will work for…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: is a method of evaluating securities by iden

A: Explanation : Technical analysis can be understood as the way of appraising commodities that…

Q: The following are facts about Common Stock, Except:  Group of answer choices Represents ownership…

A: Common stock is one of the types of shares that are being issued by the company in order to raise…

Q: In your opinion, what is the most compelling justification for a forward stock split?

A: This question explains about the most compelling justification for a forward stock split

Q: Which of the following is a disadvantage of share ownership?   Select one: a. Shares are liquid…

A: The capital of a company is divided into a definite number of units and each unit is called a share.…

Q: Choose the correct answer:  Equity security acquired for non-trading and the shares are not enough…

A: Solution Concept When there is no significant influence then the investment is financial asset Debt…

Q: A stock market analyst is

A: Answer : Weak form efficiency

Q: what is the terminology for the lowest price listed on a stock market exchange at which an investor…

A: Stock price represents the worth of the stock. The market price, buyer price, ask price, and bid…