Which of the Following Statements Is CORRECT

question 47

Multiple Choice

Which of the following statements is CORRECT?

• A)When firms are deciding on the size of stock splits-say whether to declare a 2-for-1 split or a 3-for-1 split, it is best to declare the smaller one, in this case the 2-for-1 split, because then the after-split price will be higher than if the 3-for-1 split had been used.
• B)Back before the SEC was created in the 1930s, companies would declare reverse splits in order to boost their stock prices.However, this was determined to be a deceptive practice, and it is illegal today.
• C)Stock splits create more administrative problems for investors than stock dividends, especially determining the tax basis of their shares when they decide to sell them, so today stock dividends are used far more often than stock splits.
• D)When a company declares a stock split, the price of the stock typically declines-by about 50% after a 2-for-1 split-and this necessarily reduces the total market value of the equity.
• E)If a firm's stock price is quite high relative to most stocks-say $500 per share-then it can declare a stock split of say 10-for-1 so as to bring the price down to something close to $50.Moreover, if the price is relatively low-say $2 per share-then it can declare a "reverse split" of say 1-for-25 so as to bring the price up to somewhere around $50 per share.

Explain the role of efficacy expectations in behaviors and emotions.

Understand the concept of prototypes and how concepts are classified.

Distinguish between positive and negative explanatory styles and their impact on psychological states.

Identify the variations in learned helplessness types.

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Definitions:

Neuroscience

The scientific study of the structure, function, development, genetics, and biochemistry of the nervous system, emphasizing that the brain and nervous system are central to understanding behavior, thought, and emotion.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience as well as thought.

Behavior

The variety of behaviors and gestures exhibited by people, organisms, systems, or synthetic entities in response to one another or their surroundings.

Structuralism

An approach in psychology that analyzes mental structures by breaking down mental processes into their basic components.