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Figure 7-2
-Refer to Figure 7-2. The potential output in this economy is
Premium on Stock
The amount by which the sale price of a stock exceeds its par value, often occurring when investors view the company as having strong future prospects.
Par Value
Par value is a nominal or face value assigned to a share of stock or bond when it is issued, which has little significance today but was historically the legal capital of the share.
Capital Gain
The profit earned from the sale of an asset or investment exceeding its purchase price.
Paid-In Capital
The total amount of money shareholders have invested in a company through the purchase of stock, excluding any stock purchased on secondary markets.
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