Bounded Self-Interest

question 29

Multiple Choice

Bounded self-interest

• A)is limited by the computing power of the human brain.
• B)prevents us from making a decision that we know,at the time of implementing the decision,we will later regret.
• C)is the tendency for people to value something more highly simply because they own it.
• D)results in sometimes suppressing our own interests to help others.
• E)is the tendency for people to value something more highly simply because a friend owns it.

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Definitions:

Treasury Stock

Shares repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Shares Outstanding

The total number of shares of stock that are owned by investors, including both public shareholders and company insiders.

Market Price

The existing rate at which a service or asset is traded within a marketplace.

Buy Back

A corporate action in which a company purchases its own shares from the marketplace, reducing the number of outstanding shares.