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Understanding Stock and Dividends: Key Concepts for Merchants and Investors

In the world of commerce and finance, understanding stock and dividends is crucial. Stock refers to the supply of goods kept on hand for sale, whether by a merchant, distributor, or manufacturer. This inventory is vital for meeting customer demand and ensuring business sustainability. On the other hand, dividends are payments made by companies to their shareholders, representing a portion of profits. This guide will help you grasp these fundamental concepts for better decision-making in business and investing.

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Understanding Stock and Dividends: Key Concepts for Merchants and Investors

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  1. Stephen

    Final voc.
  2. Stock A supplyofgoodskeptonhandforsaletocustomers by a merchant,distributor, manufacturer, etc.;inventory.
  3. Dividends A taxable payment declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings, usually quarterly.
  4. Capital Gain The increase in value of an asset (as stock or real estate) between the time it is bought and the time it is sold.
  5. Common Stock Capital stock that is secondary to preferred stock in the distribution of dividends and often of assets.
  6. Blue Chip Stock A stock considered reliable with respect to both dividend income and capital value.
  7. Dow Jones Oldest and most widely quoted measures of price changes in the market value of the shares of the blue chip US firms taken to represent the US stock market as a whole.
  8. Futures A prospective or expected condition, especially one considered with regard to growth, advancement, or development.
  9. Options An item of equipment or a feature that may be chosen as an addition to or replacement for standard equipment and features.
  10. Bond An insurance agreement pledging surety for financial loss caused to another by the act or default of a third person or by some contingency over which the third person may have no control.
  11. Mutual Fund An open-end investment company that invests money of its shareholders in a usually diversified group of securities of other corporations.
  12. Commodities An article of trade or commerce, especially a product as distinguished from a service.
  13. Preferred Stock Class of stock (shares) that pays fixed and regular interest income.
  14. New York Stock Exchange (NYSE) The oldest and largest stock exchange in the U.S., located on Wall Street in New York City. The NYSE is responsible for setting policy, supervising member activities, listing securities, overseeing the transfer of member seats, and evaluating applicants.
  15. www.dictionary.reference.com\ www.investorword.com www.merriam-webster.com www.thefreedictionary.com www.businessdictionary.com
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