Stocks and bonds are the major sources of corporate financing, as well as the most important vehicles of investment for individual and institutional investors. Stocks represent ownership in the corporation and entitle the investor to the rights of an owner to receive dividends,…
Aside from stocks and bonds, other investment instruments are mutual funds, stock options, and other financial derivative securities, which are briefly defined and described here.
A stock is ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets (Downes, John & Goodman, Jordon Elliot, p. 556, Barron’s Educational Series). The price of a stock is the equivalent of the present value of all future dividends; it is also the present value of a dividend stream for the number of years it would have been held, plus the present value of the anticipated price of the stock after that time period (Block, Stanley B. & Hirt, Geoffrey A., p. 284, McGraw-Hill Irwin).
Common stocks entitle the shareholder to received dividends in stocks and bonds, and to vote in the election of directors and other matters taken up at shareholder meetings or by proxy (Downes, John & Goodman, Jordon Elliot, p. 556, Barron’s Educational Series).
The stock market is the general term referring to the organized trading of securities through the various exchanges and the over-the-counter market (Downes, John & Goodman, Jordon Elliot, p. 563, Barron’s Educational Series). It is likely that the role played by the market in gathering and disclosing information may be more important for large firms because their stocks are traded more often and are followed by many analysts (Demirguc-Kunt, Asli & Maksimovic, Vojislav, p. 49, Finance & Development). Small firms may not benefit as much from stock market development, at least initially, because their access may be limited by high fixed issuance costs (Demirguc-Kunt, Asli & Maksimovic, Vojislav, p. 49, Finance & Development). Even the stock of small firms that are listed on an exchange may not be traded as often as the stock of larger firms, since it ...
Cite this document
(“Micro economics Term Paper Example | Topics and Well Written Essays - 2250 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/379643-micro-economics
(Micro Economics Term Paper Example | Topics and Well Written Essays - 2250 Words)
“Micro Economics Term Paper Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.net/miscellaneous/379643-micro-economics.
Macro economics consists of concepts that can be applied to the entire world. In economics a financial market is a place which allow buying and selling activities, there are many manufacturers and consumers available in the market. There are many products available of same type hence that raises competition in the market.
Even with the increasing globalization and economic integration, the economic performance of countries is still significantly different. For instance, in developing economies, the fraction and poverty index increases as opposed to developed economies such as the G8, whose economy is steadily growing (World Bank 2012(14).
There are abundant signs which are pointing towards positive glimpses because there has been a little growth in the overall income of UK and the statistics are revealing that double dip depression is now being diminished from the UK’s economy(Alderman & Shelburne, 2011).
Term paper on Effects of Taxation on Macro & Micro economics Abstract The Overall the study of economic environment is divided into two categories, microeconomics and macroeconomics. The micro-economics deals with individual units while the macro-economic deals national or international economy as a whole.
most of the revenue generated from taxes goes in public order, social engineering, the enforcement of law, defense of property, defense expenditure, public services, economic infrastructure (roads, parks etc) .
There are several profit maximization theories that are applicable to firms. In understanding profit maximization, the theory of the firm comes to play.
Firms must act to maximize their profits, and this is the basic tenet of the theory. Profit is defined as the
It can also be considered as the lowest wage at which a worker may sell his or her labor. Minimum wage differs from one country to another and from one state to another in the United States. The US federal government has specified a statutory minimum wage that each employer
s’ participation and inclination determine how any product or service can become useful for sale or purchase so to satisfy the needs of consumer and generate profit for entrepreneurs. However, competition in business market impacts directly on the decision of producers to
4 Pages(1000 words)Term Paper
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Term Paper on topic Micro economics for FREE!