The broker tells Mr. and Mrs.
Smith about the Ward Pencil Company,
which is making a lot of money and is selling shares of stock.
Smith about the Ward Pencil Company,
which is making a lot of money and is selling shares of stock.
The shares cost $5 each. The Smiths decide to buy 100 shares.
The broker fills this order, and the Smiths own these 100 shares.
The shares cost $5 each. The Smiths decide to buy 100 shares.
The broker fills this order, and the Smiths own these 100 shares.
In three months, the Ward Pencil Company issues a dividend of $1 per share.
The Smiths have 100 shares, so they get a $100 dividend.
In three months, the Ward Pencil Company issues a dividend of $1 per share.
The Smiths have 100 shares, so they get a $100 dividend.
Then the company expands.
The price of the stock goes up to $6 for each share.
Then the company expands.
The price of the stock goes up to $6 for each share.
Mr. and Mrs. Smith decide to sell their stock at $6 a share.
They get back $600, plus all of the money they have received in dividends.
Mr. and Mrs. Smith decide to sell their stock at $6 a share.
They get back $600, plus all of the money they have received in dividends.
This is a very good investment.
Questions 26 to 28 are based on the passage you have just heard.
This is a very good investment.
Questions 26 to 28 are based on the passage you have just heard.
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