Term
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Definition
Colonial (farming, self sufficiency)
Industrial Revolution
Laissez Faire and Entrepreneurial Era
Production Era
Marketing and Service Era
Global Era |
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Term
| Types of Business Organizations |
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Definition
| Sole Proprietorships, Partnerships, Corporations, Cooperatives |
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Term
| Corporation Characteristics |
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Definition
| A separate entity from its workers by law so can't sue individuals, have to sue the business. Have to be Inc. in one state (Delaware has the most). Have a Board of Directors, governed by Stockholders, have Officers |
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Term
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Definition
| Ownership, Stock (stockholders get a vote) |
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Term
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Definition
| Companies work together as a new company |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Ex. Pepsi bought restaurants, sold them off as separate company |
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Term
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Definition
| Companies only together for one venture |
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Term
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Definition
| Institution owns stock as a company as a place to keep their money, lots of stock trading is done this way |
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Term
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Definition
| Initial Public Offering, company's first stock offering to the public |
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Term
| Market Value of a Company |
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Definition
| = Price of stock X # of Shares |
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Term
| Dow Jones Industrial Average |
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Definition
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Term
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Definition
| One vote for every share, but most stuff is determined by managers. Get dividends of the future income of a company, so when you buy a stock you are buying future profits |
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Term
| Primary and Secondary Market |
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Definition
| Primary Market is the first sale of a new stock by a company, the company keeps that money (investment bankers). After that, is sold in secondary market between traders, like on New York Stock Exchange |
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Term
| 3 Things Corporations Can Pay With |
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Definition
| Income, Loans, Equity (stock) |
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Term
| Effect of Interest Rates and Risk on Stock Prices |
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Definition
| Interest rates and risk up, stock price goes down |
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Term
| How much stock is available for sale? |
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Definition
| Corporation decides how much money they need to raise, then how much to sell each stock for and how many to put on market. More shares on market = smaller value of each stock |
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Term
| How is price of stock determined? |
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Definition
| Determined by risk, interest rates, income of company (dividend potential), company decisions |
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Term
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Definition
Systematic Risk
Unsystematic Risk (specific to one company) |
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Term
| 2 Ways to Make Money on Stock Market |
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Definition
| Receive Dividends, Gains (Buy low, sell high) |
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Term
| Counter cyclical companies |
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Definition
| Things that usually create risk and economic downturn for most companies benefits counter cyclical companies |
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Term
| Types of Counter Cyclical Companies |
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Definition
| Missile makers, colleges, discount stores, alcohol, movies |
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Term
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Definition
| Selling something before you own it |
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Term
| Relationship of Stock prices, Risk, Interest Rates, Income |
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Definition
| Prices up when risk goes down, interest rates go down, income goes down |
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