GENMATH

__ : debt-financing instrument

__ : represents ownership of the company

• Bonds : Stocks

• Stocks : Bonds

An owner of a stock

• Stockholder

• Stockowner

• Stocktenant

• Stockbearer

Has voting rights

• Common Stock

• Preferred Stock

__ : Has obligations to pay dividends

__ : Has no obligations to pay dividends

• Common Stock : Preferred Stock

• Preferred Stock : Common Stock

__ : Dividend rate is FIXED

__ : Dividend rate CHANGES

• Common Stock : Preferred Stock

• Preferred Stock : Common Stock

referred to as "notes"

• Government Bond

• Corporate Bond

• Zero-coupon Bond

bonds issued by businesses to help them pay expenses

• Government Bond

• Corporate Bond

• Zero-coupon Bond

generates a return once the bondholder is paid the face value when the bond matures

• Government Bond

• Corporate Bond

• Zero-coupon Bond

poses a higher risk than government bond but earns more

• Government Bond

• Corporate Bond

• Zero-coupon Bond

Gives a shareholder the RIGHTS to suggest business ideas

• Common Stock

• Preferred Stock