Topic
Different Investments and Stock Market
Instructions
- Describe how capital gains and dividend growth affect stock prices.
- Review how the price-to-earnings ratio and enterprise value ratios are used to compare stock values.
- Understand how the NYSE and NASDAQ are organized and operate.
Answer preview
Different investments have different in terms of capital gains (yields) and dividends. Capital gain is the difference between the selling price of an investment and its purchasing price. On the other hand, dividend is periodic interest payment from the stock’s issuing company. Dividends affect stock prices on the declaration day.
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