Share Price Changes (AQA A-Level Business): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Shareholders
Shareholders
People/orgs owning a company by holding at least one share
Ordinary share capital
Ordinary share capital
Permanent funding from shareholders that needn't be repaid
Stock Exchange function
Stock Exchange function
Marketplace for buying & selling company ownership
Dividend
Dividend
Portion of after-tax profit distributed to shareholders
Capital growth
Capital growth
Increase in share value over time
Share price determinant
Share price determinant
Market forces - supply & demand
Market capitalisation formula
Market capitalisation formula
Share price × number of shares issued
Impact of worse profits on share price
Impact of worse profits on share price
Share price typically falls
PLCs' decision-making approach
PLCs' decision-making approach
Short-term approach due to shareholder profit focus
Sole traders/private ltd vs PLCs: objectives focus
Sole traders/private ltd vs PLCs: objectives focus
Can focus more on mission statement & long-term goals