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Unformatted text preview: : Would be significantly greater . 9 * An index number is valuable because : It provides a meaningful measurement scale to calculate percentage changes . 10 * The dividends that stockholders receive : Are distribution from profits . 11 * The concept of limited liability says a stockholder of a corporation : Cannot lose more than his/her investment . 12 * You Start with $1000 portfolio; it loses 50% over the next year, the following year it gains 50% in value. At the end of two years your portfolio is worth: $750 13 * In the event of Bankruptcy, stockholders : Are the last to be paid and could end up losing what they have invested . Unit 4 ( Stocks , stock markets and market efficiency (...
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This note was uploaded on 02/12/2012 for the course ECON 101 taught by Professor Abrams during the Spring '11 term at Adams State University.
- Spring '11