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What is it called when investors buy part ownership in a company in return for a share of future profits?
Buying stock (shares)
Which of the following is a true statement about the call option?
It is a way for investors to avoid paying a future higher price of a stock. NOVANET
What are stock indexes used for?
A stock index measures the value of a section of a stock market. Investors and financial managers compute this index from the prices of selected stocks. It describes the market and compares the return on certain investments.
In which case do investors buy stock in expectations of higher profits?
In a bull market, investors buy stock in expectation of higher profits.
What is term that describes an investors optimistic view on the future of stock?
Este término se utiliza para describir situaciones financieras en las que el valor ... Los inversores que creen fielmente que el precio de las acciones y se comportan de manera totalmente optimista se dice que son los inversores “bullish”. ... un futuro comprado y son positivos en cuanto a los resultados y las ...
Which best describes a joint-stock company?
a company owned by investors who share the profits
Which answer choice below best describes who owned the money and property in a joint-stock company?
share investors
What was the danger of the stock speculation?
stock prices would decline and investors would lose money
What is it called when investors buy part ownership in a company in return for a share of future profits?
Buying stock (shares)
Which of the following is a true statement about the call option?
It is a way for investors to avoid paying a future higher price of a stock. NOVANET
What are stock indexes used for?
A stock index measures the value of a section of a stock market. Investors and financial managers compute this index from the prices of selected stocks. It describes the market and compares the return on certain investments.
For what is future trading software used?
The purpose of future trading software is that it allows traders to make predictions based on detailed statistics of how a certain stock will behave. It allows traders to properly manage their investors' funds and make their investors profits by minimizing risks.
What kind of investors are risk - seeking investors?
These are the investors who are ready to take a risk of losing their capital while making investors. You can consider stock market investors as risk seeking investors because there is no guarantee of our money in the stock market. There is always a risk of losing our capital in our stock market and hence it is a risky investment.
What factors influence the value of common stock?
supply and demand Q : But is that all? Same goes to prefered stock? 1. Expectations of the investors on the corporation's performance in the future. (a) A company is expected to make an affluent sum of profit in the future, investors saw an opportunity to make money, therefore they purchase its stock, causing the stock price to rise. (b) A company is expected to pay an affluent sum of dividend in the near future. 2. The performance of the company, balance sheet numbers (revenues vs expenses). Preferred Stock: One of the difference between a preferred stock and a common stock is that a holder of a preferred stock has a privilege of obtaining a part of the dividend when the dividends are being declared.
Why do investors buy stock in a corporation?
Investors buy stock in corporations because they expect the value of stock to rise and they wish to receive dividends (shares of profit).
Will stock market crash in 2015?
Fluctuations in stock prices are based on an immensely large variety of future events that are inherently unpredictable thus making it impossible to predict with any certainty the future direction of stock prices. It is easy to find many so called experts predicting imminent stock market crashes but their primary primary motivation is based on seeking publicity and then trying to sell novice investors a strategy on how to survive the coming market crash that are predicting. Financial advisory firms who imply that they can predict the future of stock prices are best avoided by serious investors.
Why do stock prices go up and down?
Stock prices go up and down based on the changes in investors' demand for a given corporation's stock. That demand is determined by investors' and potential investors' expectations regarding the company's future profits. If potential investors expect that a corporation will make high enough profits in the future, and they want to share in those profits and are willing to pay the current market price for the stock, they will buy stock in the company. But since there are only a fixed number of shares available for sale at any given time, as more and more new investors want to acquire stock in the same company, its price will be bid up until it gets so expensive that the expected future return no longer justifies the investment required to acquire the stock.Similarly, if stockholders get information that leads them to expect that the corporation might not do as well as they originally thought (or it looks as if having stock in another company will yield a better return for them), they will try to sell their shares at the market price. But since new investors will not be willing to pay high prices for stock when there is a big risk that the company might perform poorly, and a lot of current stockholders are trying to sell their shares at the same time, the demand for the stock on the part of new investors will be low, and its price will go down.
