Currently,about ____ of U
Currently,about ____ of U.S.households own stock,either directly or through an equity mutual fund. A)10 percent B)20 percent C)50 percent D)80 percent
Which of the following indicates why the role of vigilant investors and investment fund managers is important for the efficient operation of an economy? A)These investors generally serve on the boards of directors of corporations. B)These investors tend to buy and sell stocks in a way that rewards good management. C)These investors help allocate capital efficiently among firms and among investment projects. D)Both b and c are true.
Which of the following is true? A)The buyer of a firm's stock is purchasing a fractional share in the firm's future net revenues. B)When investors believe that a business decision by the management of a firm will increase the firm's future earnings,the price of the firm's stock will tend to rise. C)Changing stock prices provide the board of directors and managers of a firm with a strong incentive to make good decisions and undertake productive projects. D)All of the above are true.
Which of the following is true? A)The stock market provides investors with an opportunity to own a fractional share of the firm's future profits. B)A new stock issue is often an excellent way for a firm to raise funds for future expansion. C)Changes in stock prices provide information about what investors think of various business decisions. D)All of the above are true.