Issuers of common stock Issued by any corporation in any line of business Voting rights - For each share of stock held holders receive one vote Proxy: Written statement used to assign a stockholder’s voting rights to another person Basic tax considerations Common stocks provide income in the form of dividends and/or capital gains
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Commissions received by brokerage firms for executing buy and sell orders for their clients Odd lot: Quantity of fewer than 100 shares of a stock Round lot: Quantity of 100 shares of stock or multiples thereof
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Form HO-4 Covers contents of a house but not the structure itself Form HO-6 Required by the owners of condominium units Includes a minimum of $1000 in protection for any building alterations paid for by the policy holder
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Workers’ compensation insurance Required by state and federal governments Paid nearly in full by employers in most states Compensates workers for job-related illness or injury
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Continuous premium Premiums should be paid until death or policy cancellation Limited payment Premiums should be paid for specified number of years Insurance is effective until death Single premium Lifetime coverage purchased with a single premium
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Lien: Legal claim permitting the lender to liquidate the items serving as collateral to satisfy the obligation Chattel mortgage: Mortgage on personal property given as security for the payment of an obligation Collateral note: Legal note giving the lender the right to sell collateral
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Analyze the history of housing prices Foreclosures: Lenders attempt to recover loan balances from borrowers who have quit making payments by forcing the sale of the home pledged as collateral
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Convenience, services, and cost influence the choice of where to maintain a checking account Checking account can be an individual or a joint account Overdraft: Result of writing a check for an amount greater than the current account balance Overdraft protection: Depository institution automatically pays a check that overdraws the account
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Allowable deductions from gross income Educator expenses (limited), higher education tuition costs (limited), IRA contributions (limited), self-employment taxes paid, self-employed health insurance payments Adjusted gross income (AGI) Amount of income that remains after subtracting all allowable adjustments to income from gross income
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Prepared on a cash basis Cash basis: Only transactions involving actual cash inflows or actual cash outlays are recorded Income: earnings received as wages, salaries, bonuses, commissions, interest and dividends, or proceeds from the sale of assets Expenses: Money spent on living expenses and to pay taxes, purchase assets, or repay debt
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