Classify and describe the two types of investors. What are day traders?
Answer to relevant QuestionsHow do shareholders earn returns from investing in stocks? How is the market value of a firm determined? What determines the market price of a stock? Joel purchased 100 shares of stock for $ 20 per share. During the year, he received dividend checks amounting to $ 150. Joel recently sold the stock for $ 32 per share. What was Joel’s return on the stock? How much would Joel (from problem 1) save in taxes if he held the stock for more than a year, assuming he sold it for the same amount? Advise the Sampsons on whether they should invest their money each month in bank CDs, in stocks, or in some combination of the two, to save for their children’s college education. What is a short sale? When would this strategy be used?
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