Questions from Personal Finance


Q: Why may the top managers of a firm be tempted to use

Why may the top managers of a firm be tempted to use misleading estimates of revenues and expenses? How may managers be able to boost the reported earnings of their firm?

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Q: Explain how economic growth is measured. How does economic growth affect

Explain how economic growth is measured. How does economic growth affect stock prices? What are some popular indicators of economic growth? How does the government’s fiscal policy affect economic grow...

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Q: How do interest rates affect economic growth? Why do interest rates

How do interest rates affect economic growth? Why do interest rates affect some stock prices more than others? Which federal agency influences interest rates?

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Q: What is inflation? How is inflation measured? How does inflation

What is inflation? How is inflation measured? How does inflation affect stock prices?

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Q: Why is an industry analysis of stocks important? List some sources

Why is an industry analysis of stocks important? List some sources of information about firms and their industry.

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Q: What is a short sale? When would this strategy be used

What is a short sale? When would this strategy be used?

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Q: How can another country’s economic conditions affect a U.S.

How can another country’s economic conditions affect a U.S. firm and therefore its stock price?

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Q: What is the OTC? What is the role of a market

What is the OTC? What is the role of a market maker?

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Q: What determines stock price? How do investors use this information to

What determines stock price? How do investors use this information to make buy or sell decisions?

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Q: Recall that the Sampsons have a goal of saving about $300

Recall that the Sampsons have a goal of saving about $300 per month ($3,600 per year) for their children’s college education. They want to estimate how this money would grow over time if they invest i...

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