What is the primary purpose of a stock split? | Homework.Study.com (2024)

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• What are the principal differences between common stock and preferred stock?
• What are some of the major characteristics of common and preferred stock?
• What is safety stock, and what is its purpose?
• What are the principle differences between common stock and preferred stock?
• What is treasury stock and what is its purpose?
• What are some of the advantages of owning Preferred Stock instead of Common Stock?
• In your opinion, why would a company decide to perform a stock split?
• Explain what is Treasury Stock and its purpose.
• As an investor in a company, what would be your primary objective?
• What is the difference between common and preferred stock?
• What is a callable preferred stock?
• What is Treasury Stock and why would a company have it in the Equity section?
• What is callable stock?
• What are the two principal components of stockholders' equity?
• What are the main components of stockholders' equity?
• What are the primary reasons for holding inventory?
• What determines the price of a share of stock?
• What is the main difference between a bond and a share of stock?
• What are the main components of stockholders' equity? Explain briefly.
• What do you understand by premium on common stock?
• What are the journal entries for a stock split?
• What do you understand by the book value per share of stock?
• Explain the difference between common stock and preferred stock.
• Explain the main difference between common and preferred stock.
• What is the flip side of preferred stock?
• What is the difference between cumulative and preferred stock?
• What are the differences between par value stock and stock with no-par value?
• For what reasons might a corporation purchase its own stock?
• What is the book value per share ratio?
• What do you understand by capital stock?
• What is the definition of outstanding capital stock?
• What is meant by an interim acquisition of subsidiary stock?
• What is callable preferred stock and why do corporations issue such stock?
• What is treasury stock? Why is it deducted from stockholders' equity?
• Why would a company buy back its own stock? Explain.
• What is the difference between par value stock and no-par value stock?
• What are the advantages and disadvantages of investing in preferred stock?
• What is a stock? How do stocks affect the economy?
• What is the definition of basic earnings per share?
• What are the strengths and weaknesses of bonds, preferred stock, and common stock?
• What are the advantages of financing through the sale of stock?
• What are the cumulative preference shares?
• What is the advantage of purchasing a corporate bond instead of stock?
• What are stocks and why do people buy them?
• Why is preferred stock referred to as preferred?
• Why is it advisable for a company to issue bonds instead of stock?
• What are the three factors a manager should consider in controlling stock-outs?
• What are the characteristics of the price of a stock?
• (a) How does issuing a stock split affect a corporation? (b) Does it benefit the corporation? (c) What are the pros and cons?
• What is the basic objective of a consolidation?
• What is the general practice in reporting earnings per share?
• Explain common and preferred stocks and describe their differences.
• What is the role of equity accounts in raising capital?
• What impact does a stock dividend have on overall stockholders' equity?
• What is the definition of issued capital stock?
• What are the primary advantages of filing a consolidated tax return?
• What is the difference between stocks and bonds?
• Explain how stock dividends, stock splits, and reverse splits affect the firm and the investor.
• What is a subsidiary ledger and what purpose does it serve?
• What is the 2016 basic earnings per share (rounded)?
• What is the function and primary focus of financial accounting?
• What is the primary goal of a commercial bank? Why may this goal be translated into maximizing the firm's stock share price?
• What is the best capital investment technique? Why?
• What is the key reason behind bonds payable being less expensive than common stock?
• What is the difference between a small stock dividend and a large stock dividend?
• What is the importance of interest rates in both Bond and Stock Analyses?
• Why is it important to keep paid-in capital and earned capital separate?
• What are the principal advantages often cited as motivation for a private equity buyout?
• What are the advantages to issuing bonds over stocks?
• What are the reasons you might want to consider investing in preferred stock rather than bonds?
• What is the primary objective of financial reporting?
• If a stock does not mean inventory, what else can it mean?
• What exactly is Treasury stock?
• What is the definition of treasury stock?
• What purpose does a valuation account serve?
• Why is common stock not considered an asset? Isn't the company gaining value from it?
• What are the primary objectives in the audit of owners' equity accounts?
• 1. What determines the price of a share of stock? 2. Discuss the importance of the PE ratio using a stock you choose to illustrate.
• What is shares authorized vs outstanding on the balance sheet?
• Why might a business invest in another company's stock?
• Why are corporate treasurers the main buyers of preferred stock?
• What makes earnings per share so useful as a business statistic?
• Why is common stock credited and treasury stock debited?
• What is the CBOE, and why are secondary markets crucial to the popularity of options?
• What are the three main categories of inventories in a manufacturing company?
• Why is it important to separate gains from revenues?
• What is a "share premium"?
• What is the purpose of a cash flow hedge?
• What is the yield to call, and why is it important to a bond investor?
• Describe the characteristics of preferred and common stock.
• What is a treasury stock and what are the two methods for treasury stock?
• How does a stock split affect the dollar amounts in the cs or additional paid-in-capital accounts?
• What is meant by the term "trading on the equity?"
• What are some potentially legitimate reasons for a company to have a high inventory balance?
• What is the primary reason for appropriating retained earnings?
• Define the earnings per share ratio.
• What impact does Treasury stock have on the remaining shareholders?
• Explain the corporate stock.
• What is the importance of a portfolio's allocation to the realized return?
• Define or describe the following: Stockholder's Equity. Then, explain its significance or purpose.