Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

Why might an investor choose to invest in income stocks rather than growth stocks?

Income stocks typically have higher potential for rapid capital appreciation.

Income stocks rarely pay dividends to shareholders.

Income stocks provide regular dividend payments, offering a steady income stream.

Income stocks are generally riskier and more volatile than growth stocks.

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Understand the difference between income stocks and growth stocks. Income stocks are shares of companies that pay regular dividends to shareholders, providing a steady income stream, while growth stocks are shares of companies that reinvest profits to fuel growth and typically do not pay dividends.

Recognize the primary appeal of income stocks. Investors may choose income stocks for their regular dividend payments, which can be particularly attractive for individuals seeking consistent income, such as retirees.

Compare the risk and volatility. Income stocks are generally considered less risky and less volatile compared to growth stocks, as they are often associated with established companies in stable industries.

Evaluate the trade-off between capital appreciation and income. Growth stocks have higher potential for rapid capital appreciation, but they do not provide immediate income, whereas income stocks prioritize steady income over rapid growth.

Consider the investor's financial goals and risk tolerance. An investor seeking a reliable income stream with lower risk may prefer income stocks, while an investor aiming for long-term capital growth and willing to accept higher risk may opt for growth stocks.