Economy and Business Terms - Charlie, your teacher of English
instrument in question. The more modern versions of the tax no longer require a physical stamp.
The scope of stamp duty has been reduced dramatically in recent years.
Stock: It is the American name for an ordinary share. The stock (also capital stock) of a corporation
constitutes the equity stake of its owners. It represents the residual assets of the company that
would be due to stockholders after discharge of all senior claims such as secured and unsecured
debt. Stockholders' equity cannot be withdrawn from the company in a way that is intended to be
detrimental to the company's creditors.
Stockbroker: A stockbroker, also called a Registered Representative, investment advisor or simply,
broker, is a professional individual who executes buy and sell orders for stocks and other securities
through a stock market, or over the counter, for a fee or commission. Stockbrokers are usually
associated with a brokerage firm and handle transactions for retail and institutional customers.
Brokerage firms and broker-dealers are also often referred to as stockbrokers.
Stocks and Shares: The capital stock (or stock) of an incorporated business constitutes the equity
stake of its owners. It represents the residual assets of the company that would be due to
stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders'
equity cannot be withdrawn from the company in a way that is intended to be detrimental to the
company's creditors.
Shares. The stock of a corporation is partitioned into shares, the total of which are stated at the time
of business formation. Additional shares may subsequently be authorized by the existing
shareholders and issued by the company. In some jurisdictions, each share of stock has a certain
declared par value, which is a nominal accounting value used to represent the equity on the balance
sheet of the corporation. In other jurisdictions, however, shares of stock may be issued without
associated par value.
Strategy: 1Is is a method or plan chosen to bring about a desired future, such as achievement of a
goal or solution to a problem. It also is the art and science of planning and marshalling resources for
their most efficient and effective use. The term is derived from the Greek word for generalship or
leading an army.
Sub-prime loans: Sub-prime loans or mortgages are those given to borrowers with poor credit
records who are often unable to obtain more conventional loans. Borrowers put down little or no
cash themselves. There has been an explosion of sub-prime mortgages in the United States in
recent years. While initially this was seen as a good thing, allowing more people to buy their own
homes, it has now exploded into a crisis as more and more borrowers default.
Homes are being repossessed and banks are now having to write off the sub-prime debt. The effect
has spread far beyond the US as banks throughout the world have bought these sub-prime loans,
often packaged up in pools of debt called collateralized debt obligations.
Supply and demand: Fundamentally economics is about the allocation of scarce resources based
on supply of, and demand for, goods and services. Price is used to balance the supply and demand
for a particular good.
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