Share Price Changes (AQA A-Level Business): Quizzes

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Share Price changes
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What are shareholders?

People/organisations owning ≥1 share

What is ordinary share capital?

Permanent funding that isn't repaid

Which action can shareholders take themselves?

Removing directors

What is a dividend?

A portion of after-tax profit paid out

What is capital growth?

Shares increasing in value over time

What determines share prices?

Market forces (supply and demand)

What happens to share price if a company reports worse-than-expected profits?

The share price typically falls

How is market capitalisation calculated?

Share price × number of shares issued

Why do public limited companies often take a short-term approach?

Shareholders are primarily driven by profit

How do sole traders differ from public limited companies in decision-making?

Can focus on long-term objectives more

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