Share Market Basics
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Questions and Answers

What is the denominated value of a share?

  • Book value
  • Intrinsic value
  • Face value (correct)
  • Market value
  • What is the income received from the ownership of shares called?

  • Capital gain
  • Dividend (correct)
  • Interest
  • Return on investment
  • What is the owner of shares in a company called?

  • Stakeholder
  • Shareholder (correct)
  • Equity holder
  • Investor
  • What is the unit of equity ownership in the capital stock of a corporation referred to as?

    <p>Share</p> Signup and view all the answers

    What is the premise for valuing shares in different markets?

    <p>Market value</p> Signup and view all the answers

    What is a cash flow in its narrow sense?

    <p>A payment in a currency, especially from one central bank account to another</p> Signup and view all the answers

    How is a cash flow CF determined?

    <p>By its time t, nominal amount N, currency CCY, and account A</p> Signup and view all the answers

    What is the transformation process of a cash flow into a cash flow of the same value in t0 known as?

    <p>Discounting</p> Signup and view all the answers

    What are the inputs in financial models such as internal rate of return and net present value?

    <p>Time of cash flows into and out of projects</p> Signup and view all the answers

    What does being profitable not necessarily imply?

    <p>Being liquid</p> Signup and view all the answers

    Study Notes

    Share Ownership and Valuation

    • The denominated value of a share is its nominal value.
    • The income received from the ownership of shares is called dividend.
    • The owner of shares in a company is called a shareholder.
    • The unit of equity ownership in the capital stock of a corporation is referred to as a share.

    Valuation and Cash Flow

    • The premise for valuing shares in different markets is the present value of expected future cash flows.
    • In its narrow sense, a cash flow is a flow of money into or out of a business.
    • A cash flow (CF) is determined by the inflows and outflows of cash within a specific period.
    • The transformation process of a cash flow into a cash flow of the same value in t0 is known as discounting.

    Financial Modeling

    • The inputs in financial models such as internal rate of return and net present value are cash flows.
    • Being profitable does not necessarily imply creating value, as it only considers the return on investment.

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    Description

    Share Market Basics Quiz: Test your knowledge on shares, stocks, and equity ownership in corporations. Explore concepts like share capital, mutual funds, and real estate investment trusts in this informative quiz.

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