How Do the Three Common Investment Strategies Differ? Which Is

question 18

Essay

How do the three common investment strategies differ? Which is good if you want to avoid being killed rather than make a killing in the market?

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Definitions:

Par Value

The stated or principal value of a stock or bond as declared by the issuer.

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the excess over par value.

Preferred Stock

A type of equity security that usually provides a fixed dividend prior to any dividend payments to common stockholders.

Treasury Stock

Shares of a company's own stock that it has repurchased or never issued to the public.