BUS305

Essay specific features

 

Issue:

Business

 

Written by:

Lucy P

 

Date added:

April 1, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 294

 

Was viewed:

10132 times

 

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Essay content:

A share of stock is one of the equal parts into which the ownership of a company is divided. If that company does well the value of the stock increases, however if the company does poorly then the value of the stock drops and a loss for the investor occurs. The same hold true if the government sells stocks but a more invasive risk can occur, for example; If a large enough corporation purchases enough stock to have a nearly controlling interest what state would this put the government in? Bonds are a much safer way for the government to extend its need for investment and to control the supply of money with little to no risk of take over or manipulation...
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The FOMC determines the amount of government securities to buy or sell therefore protecting the government, stocks are available to any one who can afford them. 2. Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply? ? Gold or foreign currency values fluctuate depending on the economic changes that occur...
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