The "Invisible Hand" Concept Suggests That

question 9

Multiple Choice

The "invisible hand" concept suggests that:

• A)market failures imply the need for a national economic plan.
• B)big businesses are inherently more efficient than small businesses.
• C)the competitiveness of a capitalistic market economy invariably diminishes over time.
• D)given competition, private and public interests will tend to coincide.

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Definitions:

Stop-Loss

An order placed with a broker to buy or sell once the stock reaches a certain price, designed to limit an investor's loss on a security position.

Shelf Registration

Advance registration of securities with the SEC for sale up to 2 years following initial registration.

Primary Market

The financial market for new issues of securities, where buyers purchase directly from the issuer.

Stop-Buy Order

An order to purchase a security once its price surpasses a particular point, typically to limit a loss or protect a profit on a short sale.