Good morning everyone.
We are the group 6 cast a number of votes equivalent to the number of
and we will discuss to you about the Basic Concepts of
Stocks and Bonds.
Raising money for a company operation is done
either by dept financing or equity financing. The former
is done either by borrowing funds from a bank or
issuing bonds. Bonds are kind of agreement with legal
force. For example they will sign a contract and
committed to make a payment on person they
borrowed money. The later which is the usual time
is done by issuing stocks which is practically selling
part of the company.
Of course I know what you’re thinking right
now. What are stocks? Why we need to study
stocks?
First, what is the definition of stocks? When
we say stocks, it is also known as Shares or Equity.
It is an evidence of part-ownership or the people
which is also a part of a stock company which may
be used in claiming company’s assets and
earnings. Stocks, usually in the form of certificates,
are issued by the company to the buyer of stocks.
These stock buyers are called stockholders.
They shared the totality of the capital or the
investment of such company. A stockholder, no
matter how small the percentage of his or her stock
ownership, is technically a part-owner of the
company, usually a corporation. They have a right
to claim part of the stock company’s assets and
earning equivalent to the number of shares the
stockholders own.
We need to study stocks so that we have an
ideas on how massive wealth of multi-millionaires
are created in the midst or center of market risks.
There are two kinds of stocks: The preferred
stock and the common stock.
First is Preferred Stock owners are
guaranteed a fixed dividend as long as they own
the stocks. When we say dividend, it is the sum of
money paid regularly, typically quarterly by a
company to its shareholders. They are given some
extent or area of ownership of the company but
usually they do not enjoy the same voting right as a
common stock holders because the statement of
voting right varies depending on the company. In
case of company bankruptcy, the act of selling the
company to pay off debt, the preferred
stockholders, together with the creditors and
bondholders, are paid off before the common stock
owners.
The second is Common stock owners. They
are usually containing more than half of the totality
of the company’s stocks. They are given the right to
their shares in electing the members of a board.
For example they have 5 shares in the company.
Those 5 shares are equivalent to 5 votes. Most
common stocks enjoy higher return of investment
over years of market activities which are exposed
to high risk environment.
This is the formula when you are computing
rate of total shares of stocks.
Rate is equal to the total shares of stocks
divided by the number which owed by the owner
multiplied by 100. Take note of this. We multiply it
by 100 because if you need to find the rate or the
percent of total shares, you need to multiply it by
100 because the total percentage is 100 percent.
And also, it depends on the given problem when
you are computing the total votes. You just need to
multiply the number which owed by the owner on
the given number of votes per share.
So let’s answer the problem here where you
are computing rate of total shares of stocks and the
total votes of the investors.
First Question.
Since we are computing the rate of the total
shares of stocks of madrigal group of investors, our
formula is rate is equal to 500 since according to
the problem, 500 are owed by Madrigal Group of
investors divided by 1200 because 1,200 is the
total shares of stocks. We will multiply the quotient
of 500 and 1,200 by 100 since we are computing
rate. 500 divided by 1200 is equal to 0.4167 we
prefer to have a 4 decimal number so that you will
know what the exact rate of total share of stocks is.
So going back, we will multiply the 0.4167 by 100
since we are computing rate. 0.4167 multiplied by
100 is equal to 41.67. So the rate of total shares of
Madrigal group of investors is 41.67%.
Second question
First Question and the second question is
the same. We will only change the number which
owed by the owner since the second question is we
will find the rate of total shares of stocks of Atty.
Pascual. So the formula of this question is rate is
equal to 10 because according to the problem, 10
are owed by Atty. Pascual. 10 divided by the total
shares of stocks which is 1200 multiplied by 100.
So 10 divided by 1200 is equal to 0.0083 round of
with 4 decimal number. 0.0083 multiplied by 100 is
equal to 0.83. So the rate of total shares of stocks
of Atty. Pascual is 0.83%.
Third question.
 On this question, we will solve how many
votes can casted by the madrigal group of investors
and atty pascual.

If we are computing votes, it is depends on

the problem if how many number of votes are given
per share and the other investors are given one
vote per share. Since according to the problem,
The customized voting power requires 10 votes per
share for the original investors. One of the original
stockholders is the madrigal group so that madrigal
group has 10 votes per share while atty pascual
has 1 vote per share.

First we will compute how many votes can

cast by the madrigal group.

The total shares of Madrigal group are 500.

So 500 multiplied by 10 is equal to 5000. So
Madrigal group can cast 5000 votes.

Next is we will compute how many votes

can cast by Atty. Pascual.

The total shares of Atty. Pascual are 10. So

10 multiplied by 1 is equal to 10. So Atty can cast
10 votes.

Risk is a part of any market investment

because some company pay dividend regularly, but
others pay dividend depending on the decision of
the members of the board of stockholder-directors.
Example of that is the Chief Executive Officer
(CEO) or the president. If the stocks go bankrupt,
the investment made in the stock market is
worthless. However, risk takers know that the
greater the risk, the greater the possibility of higher
return of investment in the long run.

The market place for stocks is the

exchange. When we say exchange, it is an act of
giving one thing and receiving another in return.
Stock trading is done through networks of
computers. Most of the exchanges nowadays are
facilitated by high-end computer hardware.

Stocks markets are either primary market or

secondary market. The prices in the primary market
are fixed while the prices in the secondary market
are depending upon the demand and supply of the
traded securities. In the primary market, the
investor can purchase shares directly from the
company. In Secondary Market, investors buy and
sell the stocks and bonds among themselves.