business

the amount of money a business earns above and beyond what it spends for salaries and other expenses

occurs when a business's expenses are more than its revenues

all people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address

organization whose goals are for the betterment of the community, not financial gains

freedom to succeed, make your own decisions, high possibility of wealth, hire your own staff

freedom to fall, no paid vacations, no health insurance, no daycare

land, labor, capital, entrepreneurship, knowledge

denmark, new zealand, sweden, singapore

somalia, myanmar, iraq, haiti, afghanistan

fewer farmers, larger farms

farms to factories

70% of economy, increase in employment

affects all sectors of the economy

study of how society employs resources to produce goods and services for consumption among various groups and individuals

concentrates on the operation of a nation's economy as a whole

concentrates on the behavior of people and organizations in markets for particular products and services

study of how to increase resources and create conditions that will make better use of them

new energy sources, new ways of growing food, new ways of creating goods and services

decisions about what and how much to produce are made by the market

perfect, monopolistic, oligopoly, monopoly

many sellers, no one large enough to dictate the price of a product (agricultural)

many sellers with perceived differences (fast food, colleges)

few sellers, too big (cars, tobacco)

one seller (utilities)

market largely determines what goods and services are produced, who gets them, and how the economy grows

government largely determines what goods and services are produced, who gets them and how the economy will grow

some allocation of resources is made by the market and some by the government

general rise in prices of goods and services over time

when the price increases are slowing (inflation rate declining)

prices are declining because too few dollars are chasing too many goods

economy is slowing but prices are going up

monthly statistics that measure the pace of inflation or deflation

business is booming

two or more consecutive quarters of decline in the gdp

a severe recession

economy stabilizes and starts to grow

federal government's efforts to keep the economy stable by increasing and decreasing taxes or government spending

amount of money the fed gov spends beyond what it gathers in taxes

sum of gov deficits over time

when gov takes in more than it spends

financial marketplaces for stocks and bonds

handle sale of new securities

handle trading of securities between investors with the proceeds of the sale going to the seller

first offering of a company's stock

specialists who assist in the issue and sale of new securities

large organizations such as pension funds or mutual funds that invest their own funds or funds of others

an organization whose members can buy and sell securities on behalf of companies and individual investors

provides companies and investors with a means to trade stocks not listed on the national securities exchanges

telecommunications network that link dealers across the nation so they can exchange securities

federal agency responsible for regulation the various stock exchanges

detailed registration statement that includes extensive economic and financial info that must be sent to prospective investors

shares of ownership in a company

part of a firm's profits that the firm may distribute to stockholders as either cash or additional shares

holders have the right to vote for the board of directors and share in the profits if dividends are approved

owners are given preference in the payment of company dividends before common stock dividends are distributed

corporate certificate indicating that an investor has lent money to a firm

the payment the bond issuer makes to the bondholders to compensate them for the use of their money

not backed by specific collateral

backed by collateral

reserve accound set up to ensure that enough money will be available to repay bondholders on the maturity date

permit bond issuers to pay off the principal before the maturity date

allow bondholders to convert their bonds into shares of common stock

registered representative who works as a market intermediary to buy and sell securities for clients

investors who believe stock prices are going to rise

investors who expect stock prices to decline

investors who expect stock prices to decline

positive difference between the price at which you bought a stock and what you sell it for

an action by a company that gives stockholders two or more shares of additional stock for every share thats outstanding

average cost of 30 selected industrial stocks

black tuesday, market lost 13% of its value

market suffered its worst one-day drop when it lost 22% of its value

fears of an economic crisis in Asia cause widespread panic and losses