When Monitoring the Value of Your Stock Investments, It Is

question 96

Multiple Choice

When monitoring the value of your stock investments, it is important to

• A) Wait until you sell them to determine their value.
• B) Track the prices in the December copy of a financial magazine.
• C) Estimate their values based on similar stocks.
• D) Determine their values using the price quotations reported on the Internet and in newspapers.
• E) Assume that the values remain the same as long as you hold them.

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Definitions:

Nominal Wage

The wage measured in current money or monetary units, without adjusting for inflation.

Real Wage

Wages adjusted for inflation, reflecting the actual purchasing power of income earned from labor.

Inflation

The tempo at which the aggregate cost of goods and services ascends, depleting the power of purchase.

Nominal Wage

Nominal Wage refers to the amount of money paid to workers in current dollars, without adjusting for inflation or purchasing power.