US Economic History
For 138 years, this has been a stock market index of prominent companies listed on stock exchanges in the United States.
What is the Dow or Dow Jones Industrial Average?
It represents a share in the ownership of a company, including a claim on the company's earnings and assets
What is a stock?
It is a marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years and which pays periodic interest payments.
What is a US Treasury bond?
It is a stock launch in which shares of a company are sold to institutional investors and usually also to retail investors. It is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges
What is an IPO?
It is characterized by a market dominated by a small number of suppliers.
What is an oligopoly?
Governor Peter Stuyvesant called for a 10-foot wall to be built, protecting the lower part of the Dutch Colony peninsula from Native Americans.
How did Wall Street get its name?
It represents a share in the ownership of a company, including a claim on the company's earnings and assets
What is a stock?
the principal, the coupon rate, and the maturity date
What are the components of a bond?
(1) from early-stage investors;
(2) by reinvesting profits;
(3) by borrowing through banks or bonds; and
(4) by selling stock.
How can businesses raise capital?
An exclusive possession or control of the supply of or trade in a commodity or service
What is a monopoly?
Overinflated shares, growing bank loans, agricultural overproduction, panic selling, stocks purchased on margin, higher interest rates
What factors contributed to the 1929 stock market crash?
It is a distribution of profits by a corporation to its shareholders
What is a dividend?
US Government, Municipalities, International & Emerging Markets & Corporate
What are the types of bonds available to investors?
1) pocket the cash,
2) distribute it to shareholders as dividends, or
3) reinvest it back into the business.
What can business do with itś earned profits?
It is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products.
What is Monopolistic Competition?
It assumes borrowing a security whose price you think is going to fall from your brokerage and selling it on the open market. Your plan is to then buy the same stock back later, hopefully for a lower price than you initially sold it for, and pocket the difference after repaying the initial loan.
What is a short or short sale?
A commission a securities dealer charges to execute transactions or provide specialized services on behalf of clients.
What is a broker´s fee?
This refers to the amount of loss an investor is prepared to handle while making an investment decision. Several factors determine the level an investor can afford to take. Understanding this helps investors plan their entire portfolio and will drive how they invest.
What is Risk Tolerance?
Total Revenue - Total costs
What is profit?
It is a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price.
What is pure or perfect competition?
In 1890, this United States law prescribes the rule of free competition among those engaged in commerce.
What is the Sherman Anti-Trust Act?
It represents transactions between other investors and traders rather than from the companies that issue the securities.
What is a secondary market?
It represents the tradeoff between yield and bond price. When the bond price is lower than the face value, the bond yield is higher than the coupon rate. When the bond price is higher than the face value, the bond yield is lower than the coupon rate.
What is an Inverse Relationship?
They are the owners of a corporation. They receive a share of profits from the business, often in return for an investment of money or labor.
Who are the shareholders?
It is a market condition in which there is only one buyer. Because there is only one buyer for a good or service, the buyer sets the demand, and therefore, controls the price
What is a monopsony?