In a perfectly competitive market, all producers sell identical products or goods. This means that there is no differentiation in terms of quality, features, or branding among the products offered by different producers.
The products are considered perfect substitutes for one another. In such a market, buyers have complete information about the products and their prices, and there are no barriers to entry or exit for producers.
Therefore, in a perfectly competitive market, all producers sell the same standardized product, and buyers can choose to purchase from any producer based on price and availability. This feature of identical products ensures that producers compete solely on the basis of price and quantity, leading to a high degree of competition and efficiency in the market.
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True or False: Organizations often add enticements such as relocation assistance and career development programs to attract better applicants. This is the only benefit to having these programs.
The given statement "Organizations often add enticements such as relocation assistance and career development programs to attract better applicants." is True organizations often add enticements such as relocation assistance and career development programs to attract better applicants.
These programs not only attract better applicants, but they also provide additional benefits to both the employees and the organization. For instance, career development programs help employees improve their skills and knowledge, leading to increased job satisfaction and retention rates.
Furthermore, such programs foster a positive work environment, resulting in higher employee engagement and productivity. Meanwhile, relocation assistance eases the burden of moving for new employees, allowing them to focus on their new role and adapt to the organization more quickly.
In summary, while these programs do attract better applicants, they also provide numerous other benefits, such as employee skill enhancement, increased job satisfaction, and improved productivity, which ultimately contribute to the overall success of the organization.
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whether the economy is in a recession is illustrated in the ad/as model by how close the _____________________ is to the potential gdp line.
Answer:
The answer is equilibrium
Explanation:
Whether the economy is in a recession is illustrated in the ad/as model by how close the equilibrium is to the potential gdp line.
Type a paragraph explaining how you have shown initiative in the past. Use proper grammar, spelling, and punctuation.
Answer: Your previous place of work or employment. A specific instance where you showed initiative. How your initiative impacted yourself or the company.
Explanation:
profit is the only
Organizational objectives of the business.Do you agree
Explanation:
I agree because without profit what's the use of the business
Which document determines the number of shares in a company? a stock prospectus an annual bill of rights a corporate charter an annual report
Answer: Corporate charter
Explanation:
The corporate charter is also referred to as the articles of incorporation. It is a document that contains the major components that make up a company, like the objectives of the company, the structure of the company, the number of shares the company has for sale and the planned operations of the company.
When a corporate charter is approved by the state, then the company will become a legal corporation. The corporate charter also contains the names of the people that are involved in its formation.
Answer:
The answer is (c) coporate charter
Explanation:
what are the stages of the decision-making process?
Answer:
Step 1: Identify the decision. You realize that you need to make a decision.
Step 2: Gather relevant information.
Step 3: Identify the alternatives.
Step 4: Weigh the evidence.
Step 5: Choose among alternatives.
Step 6: Take action.
Step 7: Review your decision & its consequences.
Explanation:
Brainliest Please
The assembly steps/times to create a single bicycle sums to 195 seconds. The production time per day is 30,000 seconds and output per day is 600 bicycles.
If, after completing an assembly re-design, you require 6 Stations, what is the efficiency in percent?
The efficiency of the assembly process is 390%. To calculate the efficiency of the assembly process, we need to determine the total available production time and the actual production time required for the given output.
Total available production time per day = 30,000 seconds
Output per day = 600 bicycles
First, we calculate the production time required per bicycle:
Production time per bicycle = Total available production time / Output per day
Production time per bicycle = 30,000 seconds / 600 bicycles
Production time per bicycle = 50 seconds
Next, we calculate the total assembly time for the 6 stations:
Total assembly time = Sum of assembly times for each station
Total assembly time = 195 seconds
Now, we calculate the total time required to produce the output:
Total production time = Total assembly time * Output per day
Total production time = 195 seconds * 600 bicycles
Total production time = 117,000 seconds
Finally, we can calculate the efficiency:
Efficiency = (Total production time / Total available production time) * 100
Efficiency = (117,000 seconds / 30,000 seconds) * 100
Efficiency = 390%
Therefore, the efficiency of the assembly process is 390%.
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.When a borrower assumes a loan, he or she does all of the following except which?
a. Maintains the property
b. Makes payments on the property
c. Becomes liable for the provisions of the loan
d. Relieves the original mortgagor of his or her liability for the loan
D. Relieves the original mortgagor of his or her liability for the loan is the statement that is false.
When a borrower assumes a loan, he or she maintains the property, makes payments on the property, and becomes liable for the provisions of the loan. However, the original mortgagor is not relieved of his or her liability for the loan, unless the lender releases him or her from the obligation.
Loan assumption is a process whereby a borrower takes over the terms of an existing loan, typically by assuming the remaining balance and payments on a mortgage.
This can be advantageous for both the buyer and seller of a property, as it can facilitate a faster and simpler transaction, and may allow the buyer to take advantage of favorable interest rates or terms on an existing loan. However, it is important for both parties to understand the terms and conditions of the loan assumption, including any remaining balance, interest rates, and other provisions.
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Read the following carefully taking note of the key issues before you attempt the questions. The law of demand is a fundamental concept of market economies. Rational consumers will always buy more of a good they want when the price falls, and less when the price rises. The opposite holds true for the law of supply wherein more is supplied as the price goes up and vice versa. Consequently, a market is in equilibrium when the price and quantity are at a level at which supply equals demand. The quantity that consumers demand is exactly equal to the quantity that producers supply. Total welfare in society is maximized. The demand and supply of masks in Lovingdale is as follows:
At a price of $20, forty three thousand seven hundred and fifty units are demanded but three thousand units are supplied. When the price goes up to $60, thirty one thousand two hundred and fifty units are demanded whilst thirty one thousand two hundred and fifty units are supplied. At a price of $100, eighteen thousand seven and fifty units are demanded and fifty nine thousand five hundred units are supplied. Finally, at a price of $140, six thousand two hundred and fifty units are demanded whilst eighty seven thousand seven hundred and fifty units are supplied. The linear equations for the demand and supply of masks in Lovingdale are given as follows: Qd =50 000-312. 5P and Qs = -11125+706. 25P. Question 1 a) Briefly explain the three reasons behind the law of demand as evidenced by the behaviour of consumers in Lovingdale. [5 marks]
The three reasons behind the law of demand in Lovingdale are the substitution effect, income effect, and the law of diminishing marginal utility.
1. Substitution Effect: As the price of masks decreases, consumers will substitute away from other alternatives and buy more masks because they are now more affordable. Conversely, as the price of masks increases, consumers will shift to alternatives that are more affordable, thereby reducing their demand for masks.
2. Income Effect: When the price of masks falls, consumers have more purchasing power, as they can buy the same quantity of masks for a lower cost. This increase in purchasing power effectively raises their real income, leading to an increase in the quantity demanded.
Conversely, when the price of masks rises, consumers have less purchasing power, reducing their real income and resulting in a decrease in the quantity demanded.
3. Law of Diminishing Marginal Utility: According to this law, the marginal utility of a good decrease as more units are consumed. As the price of masks decreases, consumers will buy more masks, but each additional mask will provide less additional satisfaction compared to the previous one.
This diminishing satisfaction leads consumers to buy fewer masks as the price increases.
In summary, the law of demand in Lovingdale is driven by the substitution effect, income effect, and the law of diminishing marginal utility, which all contribute to the observed behavior of consumers regarding their demand for masks at different price levels.
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Alice, age 58, is single.
She owns her home and provided all the costs of keeping up her home for the entire year.
Her only income for 2022 was $46,000 in W-2 wages.
Linda, age 24, and her daughter Nancy, age 4, moved in with Linda's mother, Alice, after she separated from her spouse in April of 2020.
Linda's only income for 2022 was $25,000 in wages.
Linda provided over half of her own support.
Nancy did not provide more than half of her own support. Linda will not file a joint return with her spouse.
All individuals in the household are U.S. citizens with valid Social Security numbers. No one has a disability. They lived in the United States all year.
1.) For the purpose of determining dependency, Nancy could be the qualifying child of _______________. a. Only Alice b. Only Linda c. Either Alice or Linda d. Neither Alice nor Linda
2.) . Linda is not eligible to claim Nancy for the earned income credit because her filing status is Married Filing Separate. a. True b. False
1) For the purpose of determining dependency, Nancy could be the qualifying child of c. Either Alice or Linda.
2) The statement is false. Linda is eligible to claim Nancy for the earned income credit even if she files as Married Filing Separate.
Nancy could be the qualifying child of either Alice or Linda for the purpose of determining dependency. In this scenario, Nancy meets the requirements to be a qualifying child for both Alice and Linda. The dependency rules allow either parent or both parents to claim a child as a dependent, as long as the child meets the qualifying criteria. Since Nancy moved in with Linda's mother, Alice, after Linda's separation, both Alice and Linda could potentially meet the requirements to claim Nancy as a dependent.
Linda's eligibility to claim Nancy for the earned income credit is not dependent on her filing status. The earned income credit is available to individuals who meet certain income and dependency criteria. In this case, Linda meets the income requirements and Nancy qualifies as her dependent. The fact that Linda files as Married Filing Separate does not disqualify her from claiming the earned income credit for Nancy. The earned income credit is available to individuals who meet the criteria, regardless of their filing status.
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nate schaffran, africa’s regional director, mentions that root capital has had a focus on ________ in regard to human resources in the last five years.
Nate Schaffran, Africa’s regional director, mentions that root capital has had a focus on diversity and inclusion in regard to human resources in the last five years.
Root Capital is a nonprofit organization that provides financial support and advisory services to small and growing agricultural businesses in Africa, Latin America, and Southeast Asia. Nate Schaffran, the regional director of Africa, has recently mentioned that Root Capital has placed a strong emphasis on diversity and inclusion within their human resources department over the last five years.
Diversity and inclusion are essential components of creating a sustainable and equitable workplace. By focusing on diversity, Root Capital has ensured that their team comprises individuals from different backgrounds, cultures, and experiences.
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how did groupon leverage the technology as a startup online company to create a competitive advantage?
Groupon leverage did the technology as a startup online company to create a competitive advantage that "if the competitors can respond and solve the problems with ease then it could be the result of their software".
The Groupon leverage is the technology and scales to the target relevant deals that is based on the individual subscriber preferences.
The model of Groupon business model is based on the three concepts of economics which allows the company to enjoy the merits over the competitors and if the competitors can respond and solve the problems with ease.
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Which of the following is not a business product category in the business-to-business
Answer:
I think it is Specialty Products.
Explanation:
Sorry if I'm wrong
XXX preferred stock pays an annual dividend of $1.25 per share.
What is the value of the preferred stock if your required rate of
return is 9%?
The value of a stock refers to the estimated worth or price of a single share of the stock in the financial market. The value of the preferred stock is approximately $13.89.
The value of preferred stock is calculated using the formula for the present value of a perpetuity, which takes into account the annual dividend per share and the required rate of return. In this case, the preferred stock pays an annual dividend of $1.25 per share, and the required rate of return is 9%. By dividing the dividend per share by the required rate of return, we can calculate the value of the preferred stock. Therefore, the value of the preferred stock is approximately $13.89. This represents the estimated worth of the preferred stock based on the given dividend and the required rate of return. Investors can use this value to assess the attractiveness of the investment and make informed decisions.
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1. Smart technologies may cause consumers to forfeit their privacy rights in legal proceedings. True False
2. As we incorporate more and more technology into myriad aspects of daily life , so too are we presented with a whole new set of legal questions that must be answered. True False
Smart technologies may cause consumers to forfeit their privacy rights in legal proceedings. True Smart technologies such as the Internet of Things (IoT), big data analytics, and artificial intelligence are increasingly penetrating almost every aspect of our lives.
With these advancements come legal concerns about consumer privacy rights as these technologies collect and process massive amounts of personal data. Indeed, these technologies, which are characterized by constant data collection, present new and complex legal challenges, particularly concerning privacy rights and personal data protection. As we incorporate more and more technology into myriad aspects of daily life, so too are we presented with a whole new set of legal questions that must be answered.
The incorporation of more technology into daily life has resulted in the need for answering new legal questions. Emerging legal issues are related to data privacy, cybersecurity, intellectual property, and online harassment, among others. Technological advancements have altered and, in some instances, broken traditional legal frameworks. Legal practitioners need to keep up with the changes in technology, learn how technology has influenced legal practices, and provide solutions that balance innovation with responsibility.
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Consider a bond with maturity 2 year, 100 face value, coupon 4.60%, and yield 7.00%. compute a dollar duration numerically using a dy =0.001%. report you result with two digits decimal accuracy and the correct sign. example: -185.95
The dollar term for security with developing long term, 100 presumptive worth, coupon 4.60%, and yield at 7% is - 0.00174785.
Presently, we should compute the dollar span of this bond.
Security cost at yield 7% = (coupon rate/1 + yield rate) + (coupon rate + 100)/(1 + yield rate) ^2
= 4.6/1.07 + 4.6 + 100/1.07^2
= 4.29906542 + 91.36169098
= 95.6607564
note : with dy = 0.001%, new yield = 7.001%
New security cost with a new yield of 7.001%
= (coupon rate/1 + new yield rate) + (coupon rate + 100)/(1 + new yield rate) ^2
= 4.6/1.07001 + (4.6 + 100)/1.07001^2
= 4.29902524 + 91.35998331
= 95.65900855
Consequently, the dollar span for this bond is = 95.65900855 - 95.6607564
= - 0.00174785.
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helpppppppppppppppppppppppppp
In determining the optimal level of output, a firm should aim for the...
point where decreasing returns become negative returns
output level where fixed costs exceed variable costs
point of maximum profitability for the company
output level where marginal returns are still increasing
In figuring out the most appropriate level of output, a firm need to goal for the factor of maximum profitability for the company
financial profit is maximized at the output stage at which the slopes of the overall sales and overall price curves are same, furnished that the firm is covering its variable cost. to use the marginal decision rule in earnings maximization, the company produces the output at which marginal cost equals marginal revenue.The earnings-maximizing choice for a wonderfully competitive firm will arise at the extent of output wherein marginal sales is identical to marginal cost—that is, where MR = MC.
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The optimal level of output for a firm is the point of maximum profitability, which is found where marginal cost equals marginal revenue.
Explanation:In determining the optimal level of output, a firm should aim for the point of maximum profitability for the company. This level is obtained where marginal cost equals marginal revenue (MC=MR). In this situation, the firm maximizes its profits as it is able to sell its output at the highest possible price that exceeds its marginal cost.
Points where decreasing returns become negative or where fixed costs exceed variable costs do not necessarily represent the optimal output level. Similarly, output levels where marginal returns are still increasing may be suboptimal if they are below the level where MC=MR.
A real-world example could be a shoe manufacturing company, they would aim to produce and sell at a level where their cost per shoe (MC) equals the extra revenue from selling an extra shoe (MR) to maximize their profitability.
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73 points I will give if you like and comment 73 points
Answer:
i b b beg your pardon
Explanation:
Answer: 73 points is this what you mean?
Explanation:
You are the senior software engineer at a start-up company developing an exciting new mobile app that will allow salespeople to generate and email sales quotes and customer invoices from their smartphones. Your company's sales force has led a major corporation to believe your product will be available next week. Unfortunately, at this point the software still contains quite a few bugs. The leader of the testing group has reported that all of the known bugs appear to be minor, but it will take another month of testing for his team to be confident the product contains no catastrophic errors. Because of the fierce competition in the mobile app industry, it is critical that your company be "first to market." To the best of your knowledge, a wellestablished company will release a similar product in a few weeks. If its product appears first, your start-up company will probably go out of business.
In this scenario, the start-up company developing an exciting new mobile app that will allow salespeople to generate and email sales quotes and customer invoices from their smartphones has to handle the challenge of being first to market.
As the senior software engineer, you need to weigh the risks and benefits of releasing a product with known bugs. In this situation, it is important to consider the risks of releasing a product with known bugs and the benefits of being the first to market. On one hand, releasing the product with known bugs could damage the reputation of the start-up company and result in lost sales. On the other hand, being first to market could give the company a competitive advantage and increase sales. The leader of the testing group has reported that all of the known bugs appear to be minor, but it will take another month of testing for his team to be confident the product contains no catastrophic errors. This means that the software still contains quite a few bugs, and there is a risk that some of these bugs could cause catastrophic errors.
To mitigate the risks of releasing a product with known bugs, the start-up company could consider delaying the release until all of the known bugs have been fixed. While this would delay the release of the product, it would also ensure that the product is of high quality and will not damage the reputation of the company.
In conclusion, it is important for the start-up company to balance the risks and benefits of releasing a product with known bugs. While being first to market could give the company a competitive advantage, releasing a product with known bugs could damage the reputation of the company. As the senior software engineer, you need to make a recommendation to the company based on your knowledge of the industry and the product.
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Define opportunity cost, please!
Thank you!
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
Answer:
It's when you lose one opportunity due to picking something else or you lose a whole experience because of a chose you made. For example, if I decided to work at McDonald's then instead of going to school,I've lost a lot of chances because I made this one choice.
what are the advantages of conducting international trade using electronic document transmissions, such as edi, bolero, and tradecard?
The advantages of conducting international trade using electronic document transmissions, such as EDI, Bolero, and TradeCard, include Increased efficiency, Cost savings, Enhanced security, Improved accuracy, Real-time updates and Environmental benefits.
1. Increased efficiency: Electronic transmissions streamline and automate the exchange of documents, leading to faster processing times and reduced human errors.
2. Cost savings: Electronic document transmissions eliminate the need for paper, printing, and postage costs, leading to significant savings for businesses.
3. Enhanced security: Electronic transmissions use encryption and secure channels to protect sensitive information, reducing the risk of data breaches and unauthorized access.
4. Improved accuracy: Electronic transmissions reduce the likelihood of manual data entry errors, as information is directly exchanged between computer systems.
5. Real-time updates: Electronic transmissions allow for real-time updates and notifications, enabling businesses to make timely decisions and respond quickly to changes in the market.
6. Environmental benefits: By eliminating the need for paper-based documents, electronic transmissions contribute to a reduced environmental impact.
In summary, the advantages of conducting international trade using electronic document transmissions are increased efficiency, cost savings, enhanced security, improved accuracy, real-time updates, and environmental benefits.
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Which of the following behaviors is likely to be considered unethical?
A) a manager hires a friend rather than a more qualified applicant
B) a manager underpays an employee, knowing that the employee can't afford to quit
C) company executives encourage employees to invest in company stock while withholding information about financial problems
D) an employee accepts a gift from a supplier in return for a large order
E) all of the above
Answer:
E) all of the above
Explanation:
Unethical behavior is engaging in activities that are considered wrong or improper in society. It entails indulging in behavior that goes against the expected code of conduct in a profession or the workplace. In short, unethical behavior is not doing the right thing.
In the list provided, none of the behaviors is correct or acceptable in the workplace. They are all unethical.
3. Which of the following is consistent with the basic economic postulate that incentives
matter?
Consumers buy fewer cars when the price of cars rises.
a.
b. Farmers produce less corn when corn prices decline.
C. A politician votes for a subsidy when it is in the best interest of a special interest group
within his district even if it might harm other voters.
d. All of the above.
All of the given option are consistent with the basic economic postulate that incentives matter.So, option (d) is correct answer.
What is economic incentives?Economic incentives are financial perks offered to individuals to change their patterns of consumption and output in an economy. Most often, economic incentives are used to alter people's behavior such that desired results appear naturally.
Economics as a whole is based on the straightforward tenet that shifts in incentives have predictable effects on how people behave. Incentives are influenced by both monetary and non-monetary factors.
People will be less inclined to select something if it becomes more expensive. In turn, consumers will be more inclined to select an alternative as the benefits associated with it grow. This straightforward notion, often known as the basic postulate of economics, is an effective tool because it pertains to practically everything we do. Less people will select an option as it grows more expensive.
So, above postulate is satisfied by all options given to us.
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A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $85 per tire, payable in one year. Another supplier will supply the tires for $20,000 down today, then $45 per tire, payable in one year. What is the difference in PV between the first and the second offer, assuming interest rates are 8.2\%? A. $872 B. −$3,272 C. $2,181 D. $3,272
The correct option is B. The difference in PV between the first and second offer is approximately -$3,180.53, which is equivalent to -$3,272 when rounded to the nearest dollar.
For the first offer, the cost per tire is $85 payable in one year, resulting in a total cost of 600 tires * $85 = $51,000. To find the present value (PV), we discount this amount at an interest rate of 8.2% for one year:
PV1 = $51,000 / (1 + 0.082) = $47,105.26
For the second offer, there is an upfront payment of $20,000 today and then $45 per tire payable in one year. The total cost in one year would be 600 tires * $45 = $27,000. To find the PV, we discount the upfront payment and the future payment:
PV2 = ($20,000 / (1 + 0.082)) + ($27,000 / (1 + 0.082)) = $43,924.73
The difference in PV between the two offers is PV2 - PV1:
PV difference = $43,924.73 - $47,105.26 = -$3,180.53
The difference in present value between the two offers is approximately option is B. -$3,272.
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We know that the CPl overstates inflation by perhaps 1%. Relative to a measure like the PCE deflator. why does the CPl overstate inflation? Explain carefully, including all of the biases involved.
____
The CPI (Consumer Price Index) overstates inflation by perhaps 1% when compared to a measure like the PCE deflator.
What is it due to?This is due to the following biases:
Substitution bias: When prices increase, people tend to look for substitute goods which can be cheaper. The CPI does not account for this, as it assumes that people will continue to purchase the same goods, resulting in an overstatement of inflation.
Introduction of new products bias: When new products enter the market, they tend to be more expensive than similar products that have been available for a long time. The CPI does not take this into account, so the inflation rate may be overstated.
Commodity bias: The CPI gives equal weight to all the items it measures. However, consumers spend more on some items than others. The CPI also doesn't take into account the fact that some items, like electronics, become cheaper over time.
Quality bias: The quality of goods and services changes over time, so it's difficult to compare prices accurately. For example, a computer from 10 years ago was much more expensive than one today, but the quality has improved significantly.
The CPI may overstate inflation if it doesn't take these quality improvements into account.
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Which is the most important decision factor in transportation?
A.capacity
B. Cost
C.capability
D.reliability
Type the correct answer in the box. Spell all words correctly.
What does this situation demand from the company?
Martha bought a new laptop a week ago. She’s having trouble understanding how the laptop functions. She wants the store where she bought the laptop to help her. The store should provide Martha with good_______
by giving her all the information she needs.
Answer:
After-sales service
Explanation:
After-sales service are all the efforts of a business to keep its clients happy and satisfied with the products they have purchased. It is providing care to customers after they have made purchases from the business. After-sale service help in retaining and building loyal customers.
Some of the techniques used in after-sales service include
Keeping in touch with customers after purchases Responding to customer queries either on call, emails, or customer visit Offering technical supports when a customer is facing challenges like in the scenario described aboveAnswer:
customer service
Explanation:
I just took the test on Edmentum
are when a government, central bank, or other regulatory body places any control (taxes, regulation, restrictions, legislation) on foreign capital in and out of the domestic economy. Reserve Currency Capital Controls Debt Comparative Advantage When did the Gold Standard (Bretton Woods era) end? 1971 1970 1980 1922 Keynes can be best described as a hedgehog. True False
The Gold Standard, which was the foundation of the Bretton Woods era, ended in 1971.
The Gold Standard, as implemented during the Bretton Woods era, involved fixing the exchange rates of various currencies to gold. Under this system, countries agreed to convert their currencies into a fixed amount of gold at a set price. The United States played a central role in the system, as the US dollar was pegged to gold, and other countries' currencies were pegged to the US dollar.
However, the Bretton Woods system faced challenges and limitations over time. As economic conditions and imbalances among countries changed, maintaining fixed exchange rates became increasingly difficult. In the 1960s, the US faced persistent trade deficits and a growing supply of US dollars held by foreign central banks. This situation put pressure on the US to maintain the convertibility of dollars into gold at the agreed-upon fixed rate.
In 1971, facing concerns about its gold reserves, the US decided to suspend the convertibility of the US dollar into gold. This decision effectively ended the Bretton Woods system and marked the end of the Gold Standard as it had been established. From that point on, major currencies started to float freely against each other, and their exchange rates were determined by market forces of supply and demand.
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Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy
Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.
Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:
Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:
What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?
1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.
Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.
2. The real return on my investment in Amazon.com Inc was a net loss of 7.12% or $667.60.
3. The company I selected to buy its stock three years ago was Amazon.com Inc.
4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.
5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.
6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.
What is the stock investment?Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.
The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).
Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)
Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)
Tax (10%) = $1,024.40 ($10,244 x 10%)
Inflation (3%) = $307.32 ($10,244 x 3%)
Administration fee on sales (2%) = $204.88 ($10,244 x 2%)
Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)
Loss on returns = $667.60 ($8,707.40 - $9,375)
Loss percentage = 7.12% ($667.60/$9,375 x 100)
Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.
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