Activity 4.

Word Search. Search the words related to the topic.

Vertical, horizontal, diagonal, downward, backward

C C O R P O R A T E S T O C K S X Y Z A N M C
D L K Q R K R S M X M O B L A B T U V W X B D
E A L W E H O D I Y S I C A V C D O P Q R U E
F S M X M K M C I O P K T S C D E G C D E S F
G S N N I G D E G N G L N S H A R E S K F T G
H A O I U D L J H N A M H B D F G H I J S G H
I K C O M M O N I O P R E F E R R E D M L J I
J L M N O P Q R S Y U V Y X A N M B C D E F H

Discussion Questions. Answer the following questions in your own words.

1. What is a corporate stock?

2. What do you understand with the term stock financing?
3. If you are an investor, which would you prefer to buy a common stock or
a preferred stock? Explain your answer.
4. What are some advantages of stock financing?

ANSWER
1. Corporate stock refers to a type of ownership in a legal business entity, such as an corporation. Corporations
typically issue stock to raise money from investors to fund capital expenditures or future growth. Typically
corporate stock is broken up into common or preferred stock.

2. Stock financing is the right choice for companies whose current assets largely comprise warehouse stock.
Stock financing enables a company to effectively manage its circulating capital and to improve cash flow.

3. If i am an investor i prefer to buy Preferred stocks because provide more stability and less risk than common
stocks, though. While not guaranteed, their dividend payments are prioritized over common stock dividends and
may even be back paid if a company can't afford them at any point in time

4. One of the main advantages of issuing common stock is that it allows a business to keep the cash it has while
seeking out additional money