The Only Counterforce That Was Potentially Strong Enough to Control

question 15

Multiple Choice

The only counterforce that was potentially strong enough to control the business trusts of the late nineteenth and early twentieth centuries was

• A)government.
• B)the buying public.
• C)organized labor.
• D)business competitors.
• E)farmers.

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Definitions:

Premium on Stock

The amount by which the sale price of a stock exceeds its par value, often occurring when investors view the company as having strong future prospects.

Par Value

Par value is a nominal or face value assigned to a share of stock or bond when it is issued, which has little significance today but was historically the legal capital of the share.

Capital Gain

The profit earned from the sale of an asset or investment exceeding its purchase price.

Paid-In Capital

The total amount of money shareholders have invested in a company through the purchase of stock, excluding any stock purchased on secondary markets.