Stock Market Basics #2

Front

What is a private corporation?

Back

A private corporation is a company whose shares are owned by a small group of individuals and are not available for sale to the public.

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What is profit?

Back

Profit is the positive difference obtained when expenses are subtracted from revenue.

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What is the opening price of a stock?

Back

The opening price is the first price at which a share of stock was traded during a regular day’s trading session.

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What is a public corporation?

Back

A public corporation is a company where any person can purchase a share of stock.

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What is after-hours trading?

Back

After-hours trading refers to trades that are made after the stock market closes.

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What is a shareholder?

Back

A shareholder is an individual or institution that owns shares in a corporation.

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What is a stock?

Back

A stock represents a share in the ownership of a company and constitutes a claim on part of the company’s assets and earnings.

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What is market capitalization?

Back

Market capitalization is the total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.

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What is a stock exchange?

Back

A stock exchange is a marketplace where stocks are bought and sold, providing a platform for trading securities.

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What is a dividend?

Back

A dividend is a portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares.