38880348
Description
Mind Map by Brooke Young, updated more than 1 year ago
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Created by Brooke Young
over 1 year ago
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Chapter 21 -
Stocks, Bonds,
and Mutual
Funds
- Stocks
- Common Stock
- Have voting
rights
- Have voting
rights
- Preferred Stock
- Do not recieve voting rights, but they
receive preference over common
stockholders in dividends
- Do not recieve voting rights, but they
receive preference over common
stockholders in dividends
- Formulas
- Stock Yield Formula = Annual
dividend per share/Today's last
price per share
- Earnings per share = Last
price/Price-earnings ratio
- PE ratio = Last price per
share of stock/Annual
earnings per share
- Stock Yield Formula = Annual
dividend per share/Today's last
price per share
- Common Stock
- Bonds
- Bond selling for more
than the face value (FV)
- Formulas
- Yearly Interest = Face Value of
Bond x Stated Yearly Interest
Rate
- Bond Yield = Total annual interest of
bond/Total current cost of bond at closing
- Yearly Interest = Face Value of
Bond x Stated Yearly Interest
Rate
- Bond selling for more
than the face value (FV)
- Mutual Funds
- Investors buy shares in the
fund’s portfolio (group of
stocks and/or bonds)
- Formual
- NAV = Current market values of funds
- NAV = Current market values of funds
- Investors buy shares in the
fund’s portfolio (group of
stocks and/or bonds)
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