In the Context of Stock Indices, Which of the Following

question 91

Multiple Choice

In the context of stock indices, which of the following is a difference between the Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500) ?

• A) Unlike the S&P 500, the companies included in the DJIA are small, upcoming American corporations.
• B) Unlike the DJIA, the S&P 500 is a much broader index.
• C) Unlike the S&P 500, the DJIA tracks stock prices of 100 U.S. corporations.
• D) Unlike the DJIA, the S&P 500 is the most widely followed stock index.

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Definitions:

Clawback Provisions

Agreements that allow companies to retrieve all or part of an employee's compensation under certain conditions, such as misconduct or performance failures.

CEO Pay

The compensation package, including salary, bonuses, and benefits, given to the Chief Executive Officer of a company.

Pay-for-Performance

A compensation strategy where employee pay is directly linked to their performance, productivity, or achievement of certain targets.

Executive Compensation

The payment and benefits package given to top management and executives in a company, which may include salary, bonuses, stock options, and other perks.