Economics and Stock Market Fundamentals Flashcard

Front

What is scarcity?

Back

The limited nature of society's resources

Front

What does "Choices Economics" refer to?

Back

The study of how people make choices to satisfy their wants and needs

Front

What is a stock?

Back

A share of ownership in a company

Front

Who is a stockholder or shareholder?

Back

A person who owns shares in a company

Front

What is the main purpose of issuing stock for a company?

Back

To raise capital for business operations and growth

Front

What does "risk" mean in investing?

Back

The chance of losing money on an investment

Front

What is common stock?

Back

A type of stock that gives voting rights and potential dividends

Front

What does "capital" mean in finance?

Back

Money or assets used to invest or start a business

Front

What is a large cap stock?

Back

A stock from a company with a large market capitalization.

Front

Which of the following best describes scarcity? Unlimited wants and limited resources, Limited wants and unlimited resources, Unlimited resources and no wants, No resources and no wants

Back

Unlimited wants and limited resources