Read the summary and the most important questions on Economie

• 4 S5 BTEST 1

  This is a preview. There are 23 more flashcards available for chapter 4
  Show more cards here

• What affects the amount of dividends?

  The amount of dividends depends on the corporate profit. Higher corporate profit results in higher dividends.

• When does stock value go up?

  Stock value goes up when a company has good sales or invents a new product.

• How often are dividends paid out to stockholders?

  Dividends are paid out to stockholders every quarter, which is equivalent to every three months.

• What is a capital loss?

  A capital loss occurs when a stockholder sells stock for less than what they paid for it.

• How can a corporation raise money through stocks?

  A corporation can raise money by issuing stocks and selling ownership shares to investors.

• How can a company's performance affect stock value?

  Strong company performance, such as increased sales or successful product innovations, can lead to higher stock values.

• What are some reasons why stock value can go down?

  Stock value can go down if a company has to lay off people, doesn't sell much, or does not make a profit.

• What is a smart stock strategy for making money?

  The smart stock strategy is to invest over the long term, diversify your portfolio, and let the stock price increase over time. Even if stocks go down, you can wait until they go back up.

• What is the difference between income stock and growth stock?

  Income stock pays dividends at regular times in a year, while growth stock pays few to no dividends and reinvests all profits in the business.

• How do stockholders participate in the decisions of a company?

  Stockholders, as part owners of the company, have a say in the decisions the company makes. However, since most companies have many shareholders with millions of shares, individual stockholders may have little say.