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1. What about equity and stock investments? Aa Aa What do you know about your personal equity and equity securities? The term equity has two

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1. What about equity and stock investments? Aa Aa What do you know about your personal equity and equity securities? The term equity has two related meanings: 1. The value of a person or business after a deduction for the repayment of any debts owed 2. An ownership interest and the right to participate in a business's profits or appreciation in value Equity securities, such as common shares, are one mechanism for documenting a business's ownership interest. As an individual, you have an equity value, or net worth, based on the first meaning. That equity protects you from insolvency and bankruptcy in the event of financial losses, even though you can ussue share certificates that woud embody the second meaning. Businesses, on the other hand, can do both. Think about your personal finances and how your actions might affect the value of your personal equity, and consider what rights and privileges you might have from owning equity securities. Use the following scale to complete the survey that evaluates potential financial concerns you might encounter as a student. (Note: There are no wrong answers. You will receive 3 points after you have entered a number for each item on the survey.) 1. I strongly disagree with the statement 2. I slightly disagree with the statement, but I'm not absolutely sure. 3. I'm neutral on the subject; I neither agree nor disagree with the statement 4. I slightly agree with the statement, but I'm not sure I know why 5. I strongly agree with the statement Do I agree or disagree with... a. A review of my personal finances indicates thatI have a significant level of personal equity, or a high net worth. b. The calculation used to compute my personal equity value is also used to compute that of business organizations; however, they often call the value by other names c. I'm a huge soccer fan and have decided to purchase 10 shares of Manchester United, a team in the English Premier League, for $170 plus transaction fees. This investment allows me to participate in discussions that will determine the club's playing roster since the club's shares don't receive a dividend d. I've been given 100 common shares of Big Pines Publishing Inc. by my favorite uncle. In the letter that accompanied the shares investment made me a residual claimant on Big Pines's dividends and assets. This means I will receive my dividends before the firm's debtholders receive their interest payments , my uncle said this

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