Shareholders and Investment (AQA A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Shareholders
Shareholders
Owners of a limited company
Ordinary share capital
Ordinary share capital
Permanent money invested in business
Share capital repayment by company?
Share capital repayment by company?
No - permanent, never repaid
Where shareholders sell shares
Where shareholders sell shares
Stock Exchange (not back to company)
Dividend
Dividend
Payment to shareholders from profits
Dividends paid from
Dividends paid from
After-tax profit
Capital growth
Capital growth
Increase in share value over time
Share prices determined by
Share prices determined by
Market forces - supply & demand
When demand > supply
When demand > supply
Share price increases
Poor company performance effect
Poor company performance effect
Share price typically falls