01:220:110 Study Guide - Final Guide: Account Executive, Dollar Cost Averaging, Business Cycle
21 Dec 2016
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Economics 110 - personal finance and decision making. Investing in stocks: common stock - most basic form of corporate ownership; corporations issue common stock to finance their business startup costs and help pay for expansion and ongoing business activities. Form of equity: equity financing - money received from the owners or from the sale of shares of ownership in a business. Dividends not mandatory: dividends - distributions of money, stock, or other property that a corporation pays to stockholders. Price appreciation - value of stock goes up: classification of stocks investments. Blue chip - stock issued by large, stable corporations with a history of paying dividends that generally attracts conservative investors. Cyclical - stock that follows the business cycle of advances and declines in the economy. Defensive - stock remains stable during declines in economy. Growth - issued by a corporation that has the potential of earning profits above the average profits of all firms in the economy.
