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I am Lyosha [343]
3 years ago
15

define a stock market bubble, describe what happens after a bubble, and explain how the law of supply and demand creates both bu

bbles and it’s aftermath
Business
1 answer:
Stells [14]3 years ago
8 0

Answer

<u>A bubble is a phenomena in investing that occurs when investors increase their demand in assets so much that they cause the price to move to a value beyond accurate reflection of its actual worthiness</u>. When a bubble happens, <u>the prices of stock will fall rapidly</u>.When there is increase in the share price of stock rapidly caused by individual-perpetuating, the share value can rise beyond asset value making investor to withdraw their money faster because <u>supply will exceed demand and cause share price to fall.</u>

An increase demand on assets by investors will make the price to increase beyond rational economic value. The real worth of the stock will now be determined by firm’s performance. Investing in bubble can appear to last forever, but because they are formed by self-perpetuated reasons, they eventually fall and the money that was invested into them is lost. In such cases, investors would run to withdraw their money and avoid the loss of fall in share prices.

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3 years ago
"I’m not sure we should lay out $250,000 for that automated welding machine," said Jim Alder, president of the Superior Equipmen
NikAS [45]

Answer:

1.

The annual net cost savings promised by the automated welding machine

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Note there is a $3,000 annual maintenance cost that will then be taken off this savings amount to make up the Annual Net cash inflow of $111,500

2

A. The Net Present value is $72,227. Kindly refer to the attached document for the clear presentation

B. The project should be accepted because it delivers a positive NPV. Meaning the net benefit outweighs the cost of owning the new Assets.

3.

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The benefit the business gets in the switch to the automatic welders is approximately $67,038 annually.

7 0
3 years ago
Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per shar
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5 0
2 years ago
Jenny has a high internal locus of control. She needs a job to help pay for her expenses. Based on what you know about her, whic
antoniya [11.8K]

Answer:A) Event organizer for a local politician.

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A high internal locus of control is when a person has a strong belief that he or she is the main determinant of how events or things play out in their lives.

WITH A HIGH INTERNAL LOCUS OF CONTROL JENNY WILL PERFORM BETTER WHEN ASKED TO WORK AS AN EVENT PLANNER FOR A LOCAL POLITICIAN.

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