Stock Market

Efficient Market Hypothesis. - Common stock: - A share in the ownership of the firm. - Gives owner a claim on profits (shareholders: residual claimants) - entitled to any dividends paid out. - Limited liability: shareholder is not liable for firm's losses (beyond . the value they have invested in the stock) - Shareholder has the right to sell the stock; voting rights. - Issuing stock: a way ... ................
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