SESSION:11 Stocks and Stock ValuationVideo Activity

Session:11 Stocks and Stock Valuation

Video Activity

Principles of Finance | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-finance

Efficient Markets

1 . In the efficient market hypothesis (EMH), describe what is meant by the terms weak form efficiency, semi-strong form efficiency, and strong form efficiency. How do these forms of market efficiency differ from each other, and what are their characteristics?

2 . What is meant by the term random walk, and how does this concept relate to the EMH?

What Is Preferred Stock?

3 . Discuss the relative risks of the following financial instruments and how they compare to each other: bonds, common stocks, and preferred stocks. How and why will these three investment types typically carry different levels of risk to an investor?

4 . Discuss some of the important differences between preferred stocks and common stocks.