The Stocks on the Dow Jones Industrial Average

question 8

Multiple Choice

The stocks on the Dow Jones Industrial Average

• A) have remained unchanged since the creation of the index.
• B) include most of the stocks traded on the NYSE.
• C) are changed occasionally as circumstances dictate.
• D) consist of stocks on which the investor cannot lose money.
• E) include most of the stocks traded on the NYSE and are changed occasionally as circumstances dictate.

---

Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 designed to protect investors from fraudulent financial reporting by corporations, improving the accuracy and reliability of corporate disclosures.

Corporate Disclosures

Information that a company is required to make public, revealing important financial, operational, or governance details to stakeholders.

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico that eliminated most tariffs on trade between them.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, balancing the interests of stakeholders.