All categories

3 years ago

How did speculative investing weaken the stability of the stock market?

1 answer:

7 0

Heavy speculation is a bad idea in any market since it has a tendency to inflate prices to unrealistic levels. That is basically what many investors prior to the Great Depression did when they thought the market would keep going higher and higher. They borrowed money, sold their houses, etc.. to buy into the stock market thanks to that kind of speculation without even considering the underlying reasons for why the market is there in the first place.

You might be interested in

Accounting Equation Shannon Cook is the stockholder and operator of Personality Shine LLC, a motivational consulting business. A

Neporo4naja [7]

Answer:

a. Stockholders' equity as of December 31, 2017: $635,000

b. Stockholders' equity as of December 31, 2018: $524,000

Explanation:

Please find the below for detailed explanation and calculations:

We have the Accounting Equation as: Total Asset = Total Liabilities + Total Equity <=> Total Equity = Total Asset - Total Liabilities

Applying the Accounting Equation to find the Stockholder's Equity at the two point of time require, we have the calculation as below:

* December 31, 2017:

Total Asset = $836,000; Total Liabilities = $201,000

=> Total Stockholder's Equity = $836,000 - $201,000 =$635,000

*December 2018:

Total Asset = $836,000 - $159,000 = $677,000; Total Liabilities = $201,000 - $48,000 = $153,000

=> Total Stockholder's equity = $677,000 - $153,000 = $524,000

3 0

3 years ago

What does pito mean kids said i look like a pito

Drupady [299]

In Spanish or in what

Cause if it’s in Spanish you don’t wanna know

7 0

3 years ago

Read 2 more answers

Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory is correct. What is the range in value

STALIN [3.7K]

Answer:

C: 17.78-30 pounds

6 0

3 years ago

Through a comparable company analysis for Alibaba, you determined a P/E ratio of 6.0x is appropriate to value the company. Based

Verizon [17]

Answer:

$740,366

Explanation:

The computation of the enterprise value is given below:

P/E ratio = Market Capitalization ÷ Earnings

6 = Market Capitalization ÷ $149,680

Market Capitalization is

= 6 × $149,680

= $898,080

Now,

Enterprise Value = Market Capitalization + Market Value of Debt - Cash & Cash Equivalents.

= $898,080 - $157,714

= $740,366

3 0

3 years ago

Current projections indicate that by the year 2030, there will be ______ tax-paying workers for every retiree collecting Social

lakkis [162]

Current projections indicate that by the year 2030, there will be 2.0 tax-paying workers for every retiree collecting Social Security.

A tax is a mandatory fee or financial charge that a government imposes on a person or a business in order to raise money for public projects like building the greatest infrastructure and services. Different public expenditure programs are then funded with the funds that have been raised.
There are two main categories of taxes: direct taxes and indirect taxes. Both taxes are implemented in different ways. Some taxes, like the dreaded income tax and corporate tax, are paid directly by you, while others, like sales tax and service tax, are paid inadvertently.
The government uses taxes to fund a variety of welfare programs, including job initiatives.

Thus this is the answer.

To learn more about Tax, refer:brainly.com/question/25783927

#SPJ4

3 0

1 year ago