What is a stock and why are stocks also referred to as equities. In your response, be sure to explain what is meant by “equity.”
What are dividends? Who received dividends? Who pays dividends? Do dividends represent a cash inflow or a cash outflow for the stockholder?
In finance, we always say that the value of any financial security can generally be determined as the present value (PV) of all the future expected cash flows of that financial security. In the case of stocks, what are the major cash flows associated with stock ownership?