‘Junk status’ is a term describing a country which has fallen below desirable levels of investment according to international rating agencies. <span>Overseas investors would withdraw their money and the government would have to pay much higher interest rates to borrow money to service and repay its massive loans such as those which Eskom, SAA and other State-owned enterprises had built up. Interest rates would go up and the value of the rand would shrink.</span>
Direct relation. If iron is used to make steel, and iron is cheaper now, steel will also be cheaper. Decrease in price can mean they have a bunch of it, a surplus.
Supply and demand says if you got a lot of something prices go down. So if you have a lot of cheap iron, you can make a lot of cheap steel
The information that would cause a company's stock price to go
down is a company abandons development of a new technology.
<h3>What is a stock?</h3>
A stock is a means used to raise capital by public companies. Stocks give holders the right to become owners of the company. Stockholders receive dividends.
When a company abandons the development of new technology, it is a negative signal that indicates to the public that all is not well. This reduces the confidence of the public in the company. As a result, stock prices begin to fall.
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False, Nathan should not include this in his budget.
When budgeting, there are several things that one should include such as:
- net income
- debt repayments
- food
- utilities
- insurance
- savings and others
Notice how one should include their net income not their gross income. Net income is what comes after tax and this is the disposable income that a person has and can spend from.
In conclusion, Nathan should only include his net income and as this commission is before taxes, he should not include it.
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