What are the meanings of the following payout,shares, junk bond, prospective, payout margin, Income

Answer 1

1. Payout: The distribution of money or assets to shareholders or investors, typically as a dividend or profit.

2. Shares: Units of ownership in a company, representing a portion of the company's capital stock. Shareholders who own shares are entitled to a portion of the company's profits and assets.

3. Junk bond: A high-risk, high-yield bond issued by companies with lower credit ratings. Junk bonds typically offer higher returns to compensate for the increased risk of default.

4. Prospective: Likely or expected to happen in the future; potential or anticipated.

5. Payout margin: The percentage of a company's earnings that are paid out as dividends or distributed to shareholders. It is calculated by dividing the total dividends paid by the company's net income.

6. Income: Money received from sources such as employment, investments, or business activities. Income is a key measure of financial resources and is used to calculate taxes and assess an individual or company's financial health.