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Some Data That at First Might Seem Puzzling: the Share

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Essay

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?


Definitions:

Share-Based Compensation

A form of remuneration where employees or executives receive awards in the form of shares or rights to shares as part of their compensation.

Unrealized Losses

Losses on investment or asset values that have decreased in market value but haven’t actually been sold by the company.

Dividends Declared

The amount of earnings a company has decided to pay out to its shareholders as dividends.

Diluted Earnings

A company's earnings calculated with the assumption that all convertible securities have been converted into common stock.

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