84 THE WORLD OF STOCKS

• No set dividend unless declared by company.

• Public stockholders have voting rights.
Proof of Ownership Stock Certificates
• Physical delivery of certificate.
• “Denomination” (number of shares) displayed.
• Not easily transferred from one person to another—certificate
must be physically sent back to the company (or delivered to
the brokerage firm) for issuance of a new certificate.
Street Name
• Held by brokerage.
• No threat of loss, damage.
• Monthly valuation updates.
• Dividends, splits, and so on are automatically accounted for
and added to the account.
Varieties Large-Cap
• Blue-chip stocks.
• Long history of profitability.
• Low risk.
Mid-Cap
• Mid to high market cap.
• More growth oriented.
• Slightly higher risk.
Small-Cap
• Much more aggressive growth potential.
• $150 million to $500 million market cap.
• Under-owned by institutional investors.
• Higher risk, greater volatility.
Micro-Cap
• Small market cap, start-up stage.
• High risk.
• Possible illiquid market (tough to sell).
• Wild price swings caused by rumors, and so forth.
• Enormous returns possible, as well as similar losses.
Quotes Display of Previous and/or Current Trading Day’s Information
• Newspapers
Open
High/low
Closing price
Volume (shares traded that day)
P/E ratio
52-week high/low
• Computers/Online
Real-time or delayed
Bid/ask
High/low for day
Volume
% change from previous day’s close