What exactly is a stock???

Hello, I’ve been reading this forum with interest now and I keep reading the word, “stock”. I was actually born and raised on a farm and I didn’t think they had much “livestock” runnin round Wallstreet.

very funny.

Not funny. This is funny: http://www.analystforum.com/phorums/read.php?11,610439

Frsutatation Take a break from your studies

ymc, I saw that thread. The material difference is that while the other person might be genuinely interested in how to finance a car loan, this thread is just bryant asking a tongue-in-cheek question.

lola, you know my soul…you sitting for level I this Dec?

I thought that at one point there was livestock on wall street. so i googled and… History of Wall Street - On Manhattan Island, a wall was built between the Dutch commune and their outlying farms to protect against wild animals and Indians. This is the wall for which today’s Wall Street is named.

nolabird032 Wrote: ------------------------------------------------------- > I thought that at one point there was livestock on > wall street. so i googled and… > > History of Wall Street - > > On Manhattan Island, a wall was built between the > Dutch commune and their outlying farms to protect > against wild animals and Indians. This is the wall > for which today’s Wall Street is named. You are definitely an analyst by nature.

bryant Wrote: ------------------------------------------------------- > lola, > you know my soul…you sitting for level I this > Dec? *puts away crystal ball* yes, I am. It’s my first attempt and I’m getting in panic mode already :slight_smile:

Which of the following is a definition of a stock: a) An ownership interest in the assets of a company b) A call option on the assets of the company c) A claim on a fixed percentage of future dividends d) A right to vote on corporate governance matters

or i read The Great Game a couple years ago. actually i like your answer better. lets go with that.

I think b) can’t be correct in all cases because you don’t get dividend by owning call options.

a) would be my best guess

What is the biggest city in the world? Dublin, because it keeps on doublin and doublin…

I think the joke is what’s the richest country in the world? Ireland becauise its capital is always Dublin.

lola Wrote: ------------------------------------------------------- > bryant Wrote: > -------------------------------------------------- > ----- > > lola, > > you know my soul…you sitting for level I this > > Dec? > > > *puts away crystal ball* > > yes, I am. It’s my first attempt and I’m getting > in panic mode already :slight_smile: Assuming you put forth an effort, you should do just fine. Review the practice problems, memorize your formulas, go into the exam well prepared, then pass the test. Nothing to it!

Joey, it’s a) by process of elimination, although with a far-fetched but not unrealistic scenario I could eliminate that option as well.

But we want a discussion about the choices because that’s fun and educational. Like why did you eliminate the other choices?

Don’t take the bait skillionaire, he’s walking you into his web.

I’ll bite. (I mean, if you’re going to get b!tch-slapped by someone, you could do worse than Joey.) You could perhaps eliminate all choices: a) stockholders don’t have ‘ownership’ in the legal sense – they can’t sue for title b) ditto – stock might be likened to a call on the value of the company c) new higher-priority stock (e.g. preferreds) can interrupt dividend priority d) lots of nonvoting stock out there