BU223 Lecture Notes - Lecture 8: Dow Jones Industrial Average, Dollar Cost Averaging, Nyse Composite
Document Summary
Initially, this chapter describes both common and preferred stock as investment alternatives - why corporations sell common stocks and why investors purchase those stocks are discussed. Next, the major differences between common stock and preferred stock are covered. Special features of preferred stock are covered, such as be the cumulative, participation, and conversion features which can make preferred stock a more attractive investment. Methods that investors can use to evaluate stock investments are presented. The steps involved in buying and selling stocks are described. The long-term techniques of buy and hold, dollar cost averaging, direct investment plans, and dividend reinvestment plans are covered. The speculative techniques of margin transactions and selling short are covered in notes-viii-c, while a brief overview of stock options is discussed in this section of notes. The most popular indexes are: s&p/tsx composite index, dow jones industrial. Average, nyse composite index, nasdaq composite index, and the standard and.
