The Basic Purpose of Financial Markets Is

question 63

Multiple Choice

The basic purpose of financial markets is:

• A)to match people who want money to spend now with people who want to save their money for later.
• B)to buy and sell different currencies in order to make a profit.
• C)to sell commodities to firms as inputs.
• D)to buy commodities from firms and the government to sell to the public.

Describe the evolution of colonial unity and identity in the face of British policies.

Recognize the early expressions and discussions around concepts of liberty and rights as precursors to the revolutionary ideology.

Understand the key figures and their roles during the Revolutionary period.

Identify the advantages and strategies that contributed to the American victory in the Revolutionary War.

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Definitions:

Share Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shares remains the same.

Net Value

represents the final value of an asset or transaction after deducting all costs, expenses, and liabilities.

Capital Surplus

A balance sheet account; the portion of shareholders’ contributions exceeding the par or stated value of shares. Also called additional paid in capital.

Derivative Action

A lawsuit brought by shareholders on behalf of a corporation against third parties, typically involving claims of mismanagement or abuse by corporate officers.