Peregrine Exam Review Day 1 Questions with Correct Amswers Balance Sheet Analysis - Correct Answers Analysis of assets, liabilities, and equity Annually or quarterly Helpful for investors, bankers and brokers Compliance in Accounting - Correct Answers Sarbanes act was created in 2002 to protect shareholders What are dividends? - Correct Answers a sum of money paid regularly by a company to its shareholders out of its profits _ can be allocated as fixed amount per share - Correct Answers Dividends Dividends - Correct Answers can only be received one or more regular payment stream Cash dividend - Correct Answers paid out of currency of the company Are usually taxable stock dividend - Correct Answers Paid out in form of stock Property - Correct Answers paid out in form of asset Interim - Correct Answers made before a companies annual general meeting and final financial statement Common stock - Correct Answers allows owners to vote at shareholder meetings and receive dividends 1 / 2
preffered stock - Correct Answers stock that gives stockholders preference in earnings and other rights Growth stock - Correct Answers earnings grow faster than market average Dividends rarely paid Investors buy them Startup technology company likely has them Income stock - Correct Answers pays higher-than-average dividends compared to other stock issues Value stock - Correct Answers stock from a company which has a low market price considering historical earning records and value of current assets Blue Chip Stock - Correct Answers the stock of a large, well-established and financially sound company that has operated for many years Owners of bonds are - Correct Answers Debt holders, creditors and issuer Bonds usually have - Correct Answers variable or fixed interest payments Bonds are correlated with - Correct Answers inverse interest rates T/F Bonds have maturity rates - Correct Answers T Bonds must be - Correct Answers paid back in full or risk default Which bond is issued by companies? - Correct Answers Corporate bonds Companies issue these rather than bank loans - Correct Answers Corporate bonds
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