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son4ous [18]
4 years ago
11

Nathan noticed that a company that has great potential just declared a​ ________ because its stock price was getting too high fo

r the small investor to buy the stock. The company will substitute more shares for the existing shares of stock without increasing the market value of the firm.
Business
1 answer:
ratelena [41]4 years ago
5 0

Answer:

Stock-split

Explanation:

A stock-split means that the existing price of one share of Nathan will be divided into two such that the two new shares will be exactly equal to one old share. Once that is done, small investors will be more comfortable buying the shares at a cheaper price.

Whether before or after the stock-split. A given amount invested will give an investor the same percentage ownership in the same company. It has only made Nathan's shares look cheaper to attract small investors while the market capitalization (overall value) of Nathan remains the same.

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Why do you need your rate of return to be greater than inflation
slavikrds [6]
Because when inflation levels are stable and moderate, investors have lower expectations of high market returns. Conversely, expectations rise when inflation is high.
6 0
3 years ago
Joe is risk averse. joe is about to flip a fair coin and will receive $400 if it comes up heads and owe $200 if it comes up tail
MrRissso [65]

Joe is risk averse so joe would accept $100 instead of the coin toss. Joe is about to flip a fair coin and will receive $400 if it comes up heads and owe $200 if it comes up tails.

<h3>What Is Risk Averse? </h3>

The term risk-averse describes the investor who chooses the preservation of capital over the potential for a higher-than-average return. In investing, risk equals price volatility. A volatile investment can make you rich or devour your savings.

<h3>What are risk-averse and risk-seeking?</h3>

Risk-seeking confers a high degree of risk tolerance or the number of potential losses an investor is willing to accept. In contrast with risk-seeking investors, risk-averse investors seek low-risk investments and are willing to accept a lower rate of return because of the desire to preserve capital.

To learn more about Risk Averse visit the link

brainly.com/question/15169997

#SPJ4

4 0
2 years ago
Suppose the banking system currently has $300 billion in reserves, the reserve requirement is 5 percent, and excess reserves are
Readme [11.4K]

Answer:

$5,400 billion

Explanation:

The computation of the level of loans would be

We know that

Multiplier = 1 ÷ reserve ratio

               = 1 ÷ 0.05

               = 20

And the required reserve would be

= Currently reserves - excess reserve

= $300 billion - $30 billion

= $270 billion

Now the level of loan would be

= $270 billion × 20

= $5,400 billion

4 0
3 years ago
Select one advantage of an annuity for a lender. a.) There is less risk that the borrower will be unable to repay the loan. b.)
Lemur [1.5K]

Answer:

The best choice of the four listed is <u>option a.</u> There is less risk that the borrower will be unable to repay the loan.

Explanation:

In an annuity loan, the payment plan is scheduled in many time intervals, meaning that you will have a lot of time to pay the lender money, no matter how small the amount is. The person borrowing is made to pay money, during this time window, many small amounts of money. Since the borrower will be paying small amount of money from time of time until he or she is done repaying, the lender has an advantage in this situation as they will not be losing money.

7 0
3 years ago
A corporate culture is generally defined as the
Lady bird [3.3K]

Answer:

inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.

Explanation:

5 0
3 years ago
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