What does it mean to buy stock in a company and what are the primary types of stocks that companies issue?

What will be an ideal response?


A stock is a security which represents an ownership stake in a company. If you are an owner of stock, then you are an owner of the company in proportion to how much stock you own. Upon purchases of shares, you receive a stock certificate, which is kept on file by your broker. Two types of stocks are commonly issued: common stocks and preferred stocks. Common stock is ownership in the company. When a company is owned by one person, then they own 100% of the equity of the company. So, they make 100% of the decisions, take 100% of the risk, and partake in 100% of the profits. If the owner brings in a partner to share 50% of the company, then the owner's share of the company is now 50%, so they get 50% of the profits that are distributed. If the company continues to expand and they bring on eight more partners, and if they are all equal partners, the owner now gets 10% of the distributed profits and their vote on critical issues counts as 10% of the votes. A common stockholder, representing a percentage of ownership, has the right to vote on certain issues related to the company, such as the election of the board of directors. The other type of stock is called preferred stock. The owners of preferred stock have limited ownership rights, receive dividends which are fixed, so they do not partake in the profits of the corporation, receive cash dividends before the owners of common stock receive their cash dividends, and have no voting rights.

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A) Descriptive research B) Causal research C) Exploratory research D) Subjective research E) Conditional research

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What is one of the major concerns regarding the increasing use of technology in service and hospitality organizations, especially regarding customer information?

a. information overload b. expense of data analytics c. too much reliance on technology for decision making d. maintaining proper security and protection of collected data

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A. are double those of total transportation costs as in the European Union B. are 77% of the total transportation costs in the United States C. are half the cost of air transport in the United States D. are low because these are regulated by the government

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Which of these suggestions is likely to reduce audience misunderstanding?

a. Leverage your audience members’ prior knowledge. b. Avoid redundancy in your presentation. c. Hint at, but do not explicitly define, complex terms in your speech. d. Don’t limit the amount of information that you present in an informational speech.

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