Which best describes the role that government and business play in investments? They both use taxes to support a country’s growth . They both invest money to earn a profit. ... An investor makes money by being repaid for the principal.
Which best describes what generally occurs in the financial markets?
What best describes what generally occurs in financial markets is “Assets are traded .” We are talking about the place where investors can buy and sell financial instruments- It could be the stock exchange .
What are the most likely uses of capital invested in a business?
Answer Expert Verified. Capital investment would most likely be done in order to obtain and increase the amount of income, which is why most of it used would be spend to either advertising, production, and distribution . Paying taxes and repaying investors would be conducted after the income is obtained, not before.
What best describes what a market index does?
Which best describes what a market index does? An index measures market performance . Once stocks are on the market, which best explains how their prices are set? Prices fluctuate on the basis of demand.
Which statement best describes how an investor makes money off debt?
Which statement best describes how an investor makes money off debt? An investor makes money by issuing bonds .
Which is an example of a high risk investment?
Crypto assets include cryptocurrencies, blockchain companies, cryptocurrency funds, and initial coin offerings (ICOs). In recent years, certain crypto assets have generated a lot of interest from investors and the financial media. These products are considered high-risk because of their speculative nature.
Which examples best describes how a bank injects money into the economy?
So the best example of how a bank can inject money into the economy is to approve the mortgage for a customer .
Are debt certificates that are purchased by an investor?
Answer: Bonds are debt certificates that are purchased by an investor.
What type of investments do banks use to make a profit?
The primary source banks can use to make profits is lending money and other advances at higher rates compared to the cost of them. By buying stocks and bonds , as well as properties and the rights to loans, banks can ensure that they can gain profit from their customers in the future.
What does capital appreciation mean?
Capital appreciation, also known as capital gains, refers to the increase of an investment’s value . A capital appreciation fund is a fund that attempts to increase asset value primarily through investments in high-growth and value stocks.
Which best describes the role that government and business?
They both receive capital to use for growth . They both act as angel investors for start-ups. They both invest money to earn a profit. This statement best describes the role that government and business play in investments.
What are the 3 major stock market indexes in the US?
A comparison of three major U.S. stock indices: the NASDAQ Composite, Dow Jones Industrial Average, and S&P 500 Index .
What is the meaning of stock market index?
A stock market index is a statistical measure which shows changes taking place in the stock market . ... The value of the stock market index is computed using values of the underlying stocks. Any change taking place in the underlying stock prices impact the overall value of the index.
How does an investor make money off debt?
There are two ways that investors make money from bonds. The individual investor buys bonds directly, with the aim of holding them until they mature in order to profit from the interest they earn. They may also buy into a bond mutual fund or a bond exchange-traded fund (ETF).
Which factors can affect a stocks price?
Demand is proportional to four factors: earnings, economy, expectations and emotion . Stock prices usually rise when all four factors are positive and fall when all four are negative. Stock prices are volatile because these factors change frequently.
Which types of investments are securities?
Security is a financial instrument that can be traded between parties in the open market. The four types of security are debt, equity, derivative, and hybrid securities . Holders of equity securities (e.g., shares) can benefit from capital gains by selling stocks.
