The Actions of Speculators

question 144

Multiple Choice

The actions of speculators

• A)help smooth out price fluctuations.
• B)serve no useful economic purpose.
• C)make investment much more risky.
• D)cause severe shortages of some commodities.

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Definitions:

Public Company

A company whose ownership is distributed amongst general public shareholders through the trading of shares publicly on the stock exchange.

Net Income

What a company ultimately earns in profit after removing the costs of taxes and expenses from its revenue.

Stockholders' Equity

The ownership interest of shareholders in a corporation, measured as the company's total assets minus its total liabilities.

Dividends In Arrears

Outstanding dividends on cumulative preference shares that have not been paid by the company in the time stipulated.