What Change in Investment Strategies Has Contributed to Our Economic

question 22

Multiple Choice

What change in investment strategies has contributed to our economic system evolving into institutional capitalism,according to some analysts?

• A) Investors are now able to invest directly into corporations,rather than going through intermediaries.
• B) The rise of technology allows investors much more information,and therefore autonomy,in tracking stocks and predicting future sales.
• C) Investors now bundle money into grouped accounts,and this money is then used to invest in several corporations.
• D) The expansion of investing from the very wealthy to a large swatch of the population has made individuals much more tightly tied to the stock market than ever before.

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Definitions:

Current Ratio

An indicator of a company's short-term financial health, determined by dividing its assets due within a year by its liabilities due in the same timeframe.

Net Working Capital

The discrepancy between a firm's immediate assets and its short-term obligations.

Liquid Ratio

A financial metric comparing a company's liquid assets (cash and marketable securities) to its current liabilities, often used to assess liquidity.

Common Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison across companies or periods.