STOCK

AND
BONDS

X
WHAT IS STOCK?
 is a share of ownership in a business or company.
Some corporations may raise money for their expansion by issuing
stocks. Stocks are shares in the ownership of the company. Owners
of stocks may be considered as part owners of the company.
There are two types of stocks; common stocks and preferred stocks.
Both will receive dividends or share or earnings of the company.
Dividends are paid first to preferred shareholders .
WHAT IS BONDS?
 Bonds is a debt of the firm.
A bond is a certificate which proves that a company or corporation borrowed
money from a certain group of individuals or investors for a definite period of
time at a fixed rate. Owning a bond is just like saving money from a bank in
which you will earn interest from the amount borrowed.
A bond can be bought from a company or other people. The bond is
said to have a high value if it earns high interest payment compared
to the market interest rate. Otherwise, the bond is valued low.
EXAMPLES
1. Anna bought 12 shares of Vincent stock at
200.00 pesos per share and paid 365.00
pesos commission. Find anna`s total
investment.

= 12(200)(365)
Therefore, the total investment is 876,000
2. A certain financial institution declared a 40,000,000.00 pesos dividend
for the common stocks. If there are a total of 300,000.00 shares of
common stock, how much is the dividend per share?
Solution:
Given: total dividend = 40,000,000.00
total shares = 300,000.00
Find: dividend per share =?
Dividend per share = total dividend
total shares
40,000,000.00
300,000.00
therefore, the dividend is =1,333.33