10 Questions
What is the denominated value of a share?
Face value
What is the income received from the ownership of shares called?
Dividend
What is the owner of shares in a company called?
Shareholder
What is the unit of equity ownership in the capital stock of a corporation referred to as?
Share
What is the premise for valuing shares in different markets?
Market value
What is a cash flow in its narrow sense?
A payment in a currency, especially from one central bank account to another
How is a cash flow CF determined?
By its time t, nominal amount N, currency CCY, and account A
What is the transformation process of a cash flow into a cash flow of the same value in t0 known as?
Discounting
What are the inputs in financial models such as internal rate of return and net present value?
Time of cash flows into and out of projects
What does being profitable not necessarily imply?
Being liquid
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.
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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