Some Employees Have Special Knowledge About a Future Event an Organization

question 18

Multiple Choice

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock.Using this knowledge to buy or sell stock before the major event is called

• A) prospectus violations.
• B) market capitalization.
• C) insider trading.
• D) retaining earnings.
• E) underwriting.

Recognize the role of psychological distance and situational factors in obedience.

Identify the characteristics and consequences of authoritarian personalities.

Understand the principles of social influence, including reciprocity, social facilitation, and social loafing.

Examine the dynamics and effects of group behavior on decision-making, including groupthink and group polarization.

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Definitions:

Paid-in Capital

Equity capital that is contributed to a corporation by its shareholders, in addition to the prescribed par value, representing funds received from investors.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that, if omitted, accumulate and must be paid before dividends can be paid to common shareholders.

Annual Dividend

The total amount of dividend payments made to shareholders in a year.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.