Briefly Discuss How the Price of a Company's Stock Will

question 35

Essay

Briefly discuss how the price of a company's stock will be determined. Briefly describe the two main motivations for purchasing stock and indentify which of these motivations will have the greatest effect on the market.

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Definitions:

Municipal Bonds

Municipal Bonds are debt securities issued by municipalities to finance public projects, often offering tax-exempt interest payments to the investors.

Seller-Financed Mortgage

A real estate purchase financing method where the seller extends credit to the buyer to purchase the property.

Interest Received

The amount earned from interest-bearing accounts or investments, such as savings accounts or bonds, which is usually taxable income.

Itemized Deductions

Deductions from taxable income that occur when taxpayers list out specific allowable expenses on their tax return.