- 12.2.1: What is the difference between the primary market and the secondary...
- 12.2.2: What is an IPO? What is its purpose?
- 12.2.3: How does buying stock on a securities exchange differ from buying i...
- 12.2.4: List the steps in a buy transaction on a stock exchange.
- 12.2.5: List three advantages of direct investing.
- 12.2.6: What services do investors receive from a full-service broker?
- 12.2.7: What is an advantage of using a discount broker or an online broker...
- 12.2.8: What is a round lot in a stock order? What is an odd lot in a stock...
- 12.2.9: Describe four types of stock market orders
- 12.2.10: Explain the purpose of a market timing plan, and list three market ...
Solutions for Chapter 12.2: Buying and Selling Securities
Full solutions for Personal Financial Literacy | 1st Edition
a strategy that is best for a player in a game regardless of the strategies chosen by the other players
the quantity of output that minimizes average total cost
the property of distributing economic prosperity uniformly among the members of society
the quantity supplied and the quantity demanded at the equilibrium price
Federal Reserve (Fed)
the central bank of the United States
the group of institutions in the economy that help to match one person’s saving with another person’s investment
input costs that do not require an outlay of money by the firm
transfers to the poor given in the form of goods and services rather than cash
something that induces a person to act
the study of economy-wide phenomena, including inflation, unemployment, and economic growth
a small incremental adjustment to a plan of action
a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen
spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)
two goods with straight-line indifference curves
a person’s normal income
the fraction of deposits that banks hold as reserves
the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution
a situation in which quantity supplied is greater than quantity demanded
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society
value of the marginal product
the marginal product of an input times the price of the output