Stock Market Transactions Are Part of GNP

question 208

True/False

Stock market transactions are part of GNP.

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Definitions:

Shareholder's Wealth

Shareholder's Wealth is the sum total of the capital value of a company's shares plus any retained earnings or losses. It represents the shareholders' stake in the company.

Stock 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 one's holdings remains the same.

Shareholder's Wealth

The overall value that shareholders earn from their investment in a company, including dividends received and capital gains from share price appreciation.

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders, affecting share price.