Matching Flashcards
socialism in its most extreme form
Communism
When a nation’s government assumes ownership of companies on a large scale.
Nationalism
when a national government should be both the central owner and decision maker in all economic affairs of the state
Centralized socialism
high taxes redistributed funds
Welfare state
to let alone
Laissez Faire
when a government decides to sell their nationalized businesses back to private stockholders
Privatization
more government control in an economy
Socialism
less government control in an economy
Capitalism
the general public owns and the government manages
Public corporation
after buying shares of this a person becomes owner of part of a corporation
Stock
at least one general partner who has unlimited financial liability
Limited partnership
the lender
Creditor
the act of becoming security for or pledging to undertake another’s debt
Surety
when a credit worthy person promises to pay a loan if the original borrow cannot
Cosigning
a business enterprise with two or more persons as the owner
Partnership
a distribution of a portion of a corporation’s profits
Dividends
stockbrokers work for this fee
Commission
where merchants trade stocks
Stock exchanges
the most well-known stock index
DJIA
a person who generally works for a brokerage company and who specializes in buying and selling stocks on behalf of clients
Stockbroker
the most prevalent type of stock that companies offer and represents true ownership of the firm
Common stock
another name for stock traders
Floor traders
one of the most well-known stock markets
NASDAQ
when stock prices rise in an industry or across the entire market simply because of expectations and a rise in the excess of the corporation’s true value
Speculative bubble
a group of stocks that analysts use to identify stock trends in specific industries
Stock index
shareholders who own this type of stock receive their dividend payments before all others
Preferred stock
used to be paper from a stock ticker but is now an electronic message board
Tape
privately managed stock portfolios
Mutual funds
when the government has allowed a firm an exclusive right to provide a good or service
Legal monopoly
a form of market organization in which there is only one supplier in the industry
Monopoly
formalized collusion
Cartel
an industry in which the top four firms account for 75% of the market sales
Tight oligopoly
when firms already in the industry own all and vital natural resource that a new firm would need to enter the market
Natural barriers to entry
a group of businesses that share common concern
Industry
selling by a few
Oligopoly
when a firm controls 100% of a resource that is essential to an industry
Natural monopoly
governmental regulations
Artificial barriers to entry
any significant obstacle that prevents or hinders a new firm from entering an industry and competing
Barrier to entry
