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’s your most likely uses of capital invested in a business check all that apply?
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.
What best describes the role that government and business play in investments?
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 issuing bonds.
Which best describes how an investor makes money from an equity?
Which best describes how an investor makes money from an equity investment? …
They both invest money to earn a profit. They both receive capital to use for growth.
What are the uses of capital invested in a business?
Capital investments generally are made
to increase operational capacity, capture a larger share of the market, and generate more revenue
. The company may make a capital investment in the form of an equity stake in another company’s complementary operations for the same purposes.
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.
What are the 3 major stock market indexes in the US?
There are approximately 5,000 U.S. indexes. The three most widely followed indexes in the U.S. are
the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite
.
What exactly is a stock market index?
A stock market index is
a statistical measure which shows changes taking place in the stock market
. … In this way, a stock index reflects overall market sentiment and direction of price movements of products in the financial, commodities or any other markets.
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.
What describes an investor’s primary goal?
The primary objective of the high-risk income investor is
to generate the highest possible income without losing any principal
. Although many income investments are considered lower-risk, there are a number of high-risk income options, including high-yield bonds.
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.
Are debt certificates that are purchased by an investor?
Answer:
Bonds
are debt certificates that are purchased by an investor.
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 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.
What stocks are on the market which best explains how their prices are set?
Once stocks are on the market, which best explains how their prices are set?
Prices fluctuate on the basis of demand
.
