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The Share Market

Jason Marchant

Match the key business and share market terms with their definitions

Sole Trader A share market expert who helps investors with the purchase of shares
Unlimited Liability The cost of borrowing. Usually at a percentage of the amount of the loan.
Creditors An owner of a company. The owner is entitled to a share of profits and voting rights in proportion to the ownership.
Limited Liability A self-employed person. He or she runs the business on their own and has sole responsibility for its success (profits) and failure (unlimited liability).
Public Company Sole traders and partners who are legally liable for all monies owed to their creditors, even if this means they have to sell their personal possessions to pay for this.
Private Company Business and industries in the services sector. E.g. retail, banking and education.
Partnership The top manager of a company.
Shareholder Business and industries that work with raw materials. E.g. Mining, fishing and farming
Capital is a business owned by shareholders. Shareholders can be anyone and shares are traded openly on a stock exchange
Dividend A payment of profits by a company out to its shareholders
Interest How much money a business has made after it has paid its bills.
Stockbroker A company issues these to represent the ownership amount an investor is buying into the business.
Perpetual Succession The act of buying and selling goods or services in order to make a profit.
Primary Sector is a restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy. The owners will lose no more than the original capital amount put into the business.
Secondary Sector Businesses and industries that turn raw materials into tangible everyday items. E.g. manufacturing of consumer goods and construction
Tertiary Sector When running a business, the business is likely to buy goods and services from these on credit and pay later.
CEO are businesses owned by 2-20 people who share the responsibilities and burdens, including unlimited liability, of the business
Shares The original or new money needed by business to be able to start or to grow further.
Business is a business owned by shareholders. The shares are usually owned by a small group of friends or family members and cannot be traded openly
Profit This is the continuation of the running of a business despite the death, bankruptcy or other inability for a shareholder not being able to continue their ownership in the business.

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