What Are the Distinguishing Features of a Stock? What Happens

question 148

Essay

What are the distinguishing features of a stock? What happens to stockholders if the corporation
fails?

---

Definitions:

Internal Rate

This term might be incomplete or unclear; however, it is possibly referring to the internal rate of return (IRR), which is a metric used in financial analysis to estimate the profitability of potential investments.

Discount Rate

The rate of return that is used to find the present value of a future cash flow.

Cash Outflows

The total amount of money being spent by a business, commonly on expenses like rent, materials, payroll, and other operational costs.

Cash Inflows

Cash inflows refer to the money received by a business from its operating, investing, and financing activities.