By What Measure Is It Determined Whether an Ad Causes

question 10

Multiple Choice

By what measure is it determined whether an ad causes a false belief?

• A)if it deceives an ignorant consumer
• B)if it substantially interferes with a decision to buy
• C)whether it contains any factually incorrect information
• D)whether it is a product a reasonable person would want to buy

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Definitions:

Newly Issued Stock

This refers to shares that a company offers for sale to the public for the first time, outside of the shares already trading on the stock market.

Dividend Reinvestment Plans

Programs offered by corporations that allow investors to automatically reinvest their cash dividends in additional shares of the company's stock on the dividend payment date.

Preferred Stock

A type of stock that typically pays dividends at a fixed rate and has priority over common stock in terms of dividend payments and assets in the event of liquidation.

Ex-dividend Date

The date on which the buyer of a stock is not entitled to the next dividend payment. After this date, the stock sells without its dividend rights.