EC120 Study Guide - Final Guide: Absolute Advantage, General Agreement On Tariffs And Trade, Sole Proprietorship

• School: WLU
• Department: Economics
• Course: EC120
• Professor: Laura Allan

Document Summary

Bonds: bonds characteristics (return, term, priority over stockholders), types, features, factors affecting price, calculating approximate yield to maturity, relationship between prevailing interest rates and bond prices, reading bond quotations. Represents debt for issuing corporation or government. Factors affecting price: (bond prices vary inversely with interest rates) Coupon rate and prevailing rates of interest (relationship) Relationship between prevailing interest rates and bond prices, Calculate yield to maturity: relationship between prevailing interest rates and bond prices, reading bond quotations. Common stocks and preferred stocks characteristics (return/dividends, term, priority in bankruptcy situations, voting rights), features, factors affecting price, reading stock quotations. Voting rights, no fixed term, variable return, discretionary payment (dividends), Demand and supply of stock due to negative or positive perceptions/facts. Primary factors: earnings above or below expectations, rumors, general market conditions bull vs bear markets, economy, interest (especially preferred, speculation bought or sold on belief price will soon move.