If Stock Exchanges Did Not Exist

question 102

Multiple Choice

If stock exchanges did not exist,

• A)the risk to the investor of buying stocks would be much greater.
• B)the economy's resources could be more efficiently allocated among firms.
• C)there would be no organized way for firms to issue stock.
• D)investment banks would no longer play a role in handling stocks.

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Definitions:

Pay Ranges

The spectrum of compensation, from minimum to maximum, offered for specific roles or positions within an organization, often based on experience, skills, and market rates.

Broad Banding

A compensation strategy that consolidates numerous pay grades into fewer wide bands, offering flexibility in job roles and pay.

Labour Costs

The total expenses associated with employing labor, including wages, salaries, benefits, and other related costs.

Point Method

A systematic approach used in job evaluation to quantify the value of a job by assigning points based on various factors like skill, effort, and responsibility.