Which of the Following Statements Is Incorrect

question 95

Multiple Choice

Which of the following statements is incorrect?

• A) Trading at the New York Stock Exchange and the American Stock Exchange are done by open outcry.
• B) Dealers create market liquidity in the Nasdaq's electronic market.
• C) The Dow Jones Industrial Average includes 35 of the largest companies in the United States.
• D) The Nasdaq contains many very large technology firms.

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Definitions:

Cost Related

Pertaining to or concerning the expenses incurred in the production of goods or the operation of a business.

Equity Investment

An investment in shares of stock, representing ownership in a company, with the expectation of generating income from dividends and capital gains.

Fair Value Method

An accounting technique that measures and reports assets and liabilities on the basis of estimates of their current market value rather than historical cost.

Bond Investments

Financial securities that represent a loan made by an investor to a borrower, typically corporate or governmental.