Week 4 Learning Team Reflection
Anitra Stephens, April Bates, Calvin Beidleman, Nikki Torres, Raymond Wentler,
Sean Lechman, Russell Wall
FIN/571
April 13, 2015
Gurpreet Atwal

Week 4 Learning Team Reflection
Introduction
Stock valuation is needed to ensuring the value of an organization’s stock and worth in the industry. There are various measuring methods that organizations can use to determining and establishing the value. Some of the methods and the reason for valuation have been identified below.
Stock types and bonds:
The stock valuation video covered the different types of stocks and well as bonds. There are common stocks and preferred stocks. Preferred stocks are considered to be a hybrid between a common stock and a bond. This form of stock will have no maturity and can be sometimes redeemable. A common stock is when an individual purchases a share of an organization and they own that share until they want to sell their share for the market value. A debt or a bond is another form of investment that private investors can use. A bond is a contract which has a set time period, as well as set cash flows. Once the bond is matured then the investor will receive their set return amount, although investors who have bonds will receive their return on investment before the stockholders.
Assumptions and Indexes: Assumptions made on the valuation of a stock or company’s value in the future are crucial when determining the future value of a company based on its revenues. Many of the current stock values and valuations made on a company are based on the current or past performance of that company. The difficulties on valuing a company’s future revenues based on its previous performance leaves a large about of potential variance. We do not know what the future holds and an important tool that can be used to reference current, past and potential future value of