Finance Questions

When a company or corporation earns a profit or surplus, that money can be put to two uses it can either be re-invested in the business called retained earnings or it can be paid to the shareholders as a dividends.

Secondary market refers to market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange.

A journal is also called as a book of prime entry.Transactions occurred are first entered in this book to show which accounts should be debited and which should be credited.

on the basis of entries made in the journal, accounts are prepared, the book which contains the accounts is called a ledger. Transactions entered in the journal are classified according to their nature and posted in their respective accounts in ledger. it is also called as book of final entry.

Nominal money relates more to it's measure of counting - so nominal figure of what is written on bill, while "real" relates more to it's purchasing power (usually between some periods of time). For instance 100 units in nominal could buy 2 units of good in 1950 and 1 unit of good in 2005, at the same time real value of this 100 nominal units are 100 real units in 1950 and 50 real units in 2005.

Same is with GDP. In nominal it can rise due to inflation while it can stay the same or even decrease in real value.