You Have Just Purchased Some Shares in a Canadian Public

question 52

True/False

You have just purchased some shares in a Canadian public company.Your friends call you an "investee." You are surprised that they got it wrong: you are an investor.

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Definitions:

Treasury Stock

Shares that were once part of the floating stock of a company but were then repurchased and are held by the company itself.

Retained Earnings

The portion of a business's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay debt.

Net Income

The amount of profit remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue; also known as net profit.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional shares.