Econ CH 8
fee paid for a stockbroker's services
Commission
a distribution of a portion of a companies profits
Dividend
How does the stock market help analysts and policymakers?
Gives them information on how the health of the economy is and helps them see trends
What is the term for a corporations first sale?
IPO
What is an IPO?
IPO is an initial public offering is a corporations first sale of stock
no actual place
NASDAQ
spending on services is popular in US consumer spending which would indicate that health?
S & P 500
Which is the best health indicator of american industry?
The Dow
What is a stock exchange?
Aa stock exchange is a place where people come to buy and trade stocks, NYSE
What is a stock index? Explain the purpose
a group of important stocks from a particular industry that helps analysts see specific trends in specific industries
Stockholders can be called to vote on
all of the above
What is speculation? What phenomenon results?
buying/selling stock for the purpose of taking advantage of short term price changes to make money and a speculative bubble forms and then bursts due to the value of the company being exceeded
if a corporation files under bankruptcy who would last receive money?
common stockholder
SEC form after what
great depression
privately managed stock portfolio
mutual fund
a collection of stocks form diff individual corporations
portfolio
Name 2 ways in which stock markets are important today:
provide a way for investors and corporations to raise revenue and also provide information to analysts on the health of the economy
crash of 1929 was caused by what
speculative bubble
a person specialized buying/selling stocks
stockbroker
portions of ownership in a corporation
stocks
Why would a company sell less than half their stock?
to keep majority ownership & decision making control
What are two primary reasons people buy stock?
to make profit & receive a dividend