Using a Name or Description of an Item That You

question 212

Essay

Using a name or description of an item that you can't point to, provide a definition by example for "charity." If you have difficulty doing so, try to identify the source of the trouble.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and to receive dividends.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out as dividends to shareholders.

Dividend Reinvestment Plans

Programs offered by corporations allowing investors to automatically reinvest dividends paid out by the stock into additional shares, potentially increasing their holdings over time.

New Stock

Shares that are issued for the first time by a company to the public in the primary market.