What do the bid and ask prices represent on a stock quote?

July 8, 2024 No Comments

A: The bid and ask prices are stock market terms representing the supply and demand for a stock. The bid price represents the highest price an investor is willing to pay for a share. The ask price represents the lowest price at which a shareholder

What does “after the bell” mean?

July 8, 2024 No Comments

A: “ After the bell” is financial slang for activity occurring after the close of the stock market, including after-hours trading, illegal late trading of open-ended funds (during the mutual fund scandal of 2003), earnings announcements, acquisition plans and merger agreements. The term originates from

What does marginal utility tell us about consumer choice?

July 8, 2024 No Comments

A: In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction a consumer gets. Marginal utility tells how much marginal value or satisfaction a consumer gets from consuming an additional unit of good. Microeconomic theory

What economic factors affect savings account rates?

July 8, 2024 No Comments

A: At a basic economic level, the interest rate set on savings account deposits is determined by the relationship between how much banks value receiving extra deposits and how much savers value the services of a savings account. Those valuations are manipulated by how governments

What economic indicators are important for investing in the financial services sector?

July 8, 2024 No Comments

A: The financial services sector is integral to the overall level of economic activity in the United States and globally. For this reason, most of the major macroeconomic indicators are very important for the sector. Financial services companies rely on high levels of activity to

What economic indicators are important to consider when investing in the banking sector?

July 8, 2024 No Comments

A: The banking sector is a hinge for nearly all economic activity. For that reason, there’s hardly an economic indicator that doesn’t relate to the banking industry. The most important indicators include interest rates, inflation, housing sales, and overall economic productivity and growth. Each bank

What exactly is being done when shares are bought and sold?

July 8, 2024 No Comments

A: Most stocks are traded on physical or virtual exchanges. The New York Stock Exchange (NYSE), for example, is a physical exchange where some trades are placed manually on a trading floor (other trading activity is conducted electronically). NASDAQ, on the other hand, is a

What Factors Cause Shifts in Aggregate Demand?

July 8, 2024 No Comments

A: Aggregate demand (AD) is defined as the total amount of goods and services consumers are willing to purchase in a given economy and during a certain period. Sometimes aggregate demand changes in a way that alters its relationship with aggregate supply (AS); this is

What factors influence a change in demand elasticity?

July 8, 2024 No Comments

A: Demand elasticity is the sensitivity of the demand for a good or service due to a change in another factor. There are many factors that influence a change in demand elasticity. These factors include price, income level and availability of substitutes. Price One factor

What factors influence a change in supply elasticity?

July 8, 2024 No Comments

A: The elasticity of supply measures the percentage change in supply due to a change in another factor. It refers to how the amount supplied of a good or service changes in response to a price or factor change. There are several factors that affect the

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