Peregrine Exam Review Day 1
Balance Sheet Analysis - answersAnalysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - answersSarbanes act was created in 2002 to protect
shareholders
What are dividends? - answersa sum of money paid regularly by a company to its
shareholders out of its profits
_ can be allocated as fixed amount per share - answersDividends
Dividends - answerscan only be received one or more regular payment stream
Cash dividend - answerspaid out of currency of the company
Are usually taxable
stock dividend - answersPaid out in form of stock
Property - answerspaid out in form of asset
Interim - answersmade before a companies annual general meeting and final financial
statement
, Common stock - answersallows owners to vote at shareholder meetings and receive
dividends
preffered stock - answersstock that gives stockholders preference in earnings and other
rights
Growth stock - answersearnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
Income stock - answerspays higher-than-average dividends compared to other stock
issues
Value stock - answersstock from a company which has a low market price considering
historical earning records and value of current assets
Blue Chip Stock - answersthe stock of a large, well-established and financially sound
company that has operated for many years
Owners of bonds are - answersDebt holders, creditors and issuer
Bonds usually have - answersvariable or fixed interest payments
Bonds are correlated with - answersinverse interest rates
T/F Bonds have maturity rates - answersT
Bonds must be - answerspaid back in full or risk default
Which bond is issued by companies? - answersCorporate bonds
Companies issue these rather than bank loans - answersCorporate bonds
Corporate bonds - answersoffer lower interest rates
municipal bonds are - answersissued by states and municipalities
T/F Municipal bonds are tax free coupon income - answersT
Government Bonds - answersCertificates sold by the government to raise money with
the guarantee that the purchaser will be paid back later (with interest)
Balance Sheet Analysis - answersAnalysis of assets, liabilities, and equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - answersSarbanes act was created in 2002 to protect
shareholders
What are dividends? - answersa sum of money paid regularly by a company to its
shareholders out of its profits
_ can be allocated as fixed amount per share - answersDividends
Dividends - answerscan only be received one or more regular payment stream
Cash dividend - answerspaid out of currency of the company
Are usually taxable
stock dividend - answersPaid out in form of stock
Property - answerspaid out in form of asset
Interim - answersmade before a companies annual general meeting and final financial
statement
, Common stock - answersallows owners to vote at shareholder meetings and receive
dividends
preffered stock - answersstock that gives stockholders preference in earnings and other
rights
Growth stock - answersearnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
Income stock - answerspays higher-than-average dividends compared to other stock
issues
Value stock - answersstock from a company which has a low market price considering
historical earning records and value of current assets
Blue Chip Stock - answersthe stock of a large, well-established and financially sound
company that has operated for many years
Owners of bonds are - answersDebt holders, creditors and issuer
Bonds usually have - answersvariable or fixed interest payments
Bonds are correlated with - answersinverse interest rates
T/F Bonds have maturity rates - answersT
Bonds must be - answerspaid back in full or risk default
Which bond is issued by companies? - answersCorporate bonds
Companies issue these rather than bank loans - answersCorporate bonds
Corporate bonds - answersoffer lower interest rates
municipal bonds are - answersissued by states and municipalities
T/F Municipal bonds are tax free coupon income - answersT
Government Bonds - answersCertificates sold by the government to raise money with
the guarantee that the purchaser will be paid back later (with interest)