Historically the Return on Stocks Has Been Higher Than the Return

question 68

True/False

Historically the return on stocks has been higher than the return on bonds. In part this reflects the higher risk from holding stock.

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Definitions:

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by shareholders, including both public investors and restricted company insiders.

Reacquired

Reacquired refers to the act of a company buying back its own shares from the marketplace, usually to increase shareholder value or to take advantage of perceived undervaluation.

Sarbanes-Oxley Act

A U.S. law passed in 2002 to protect investors by making corporate disclosures more reliable and accurate, aiming to prevent corporate fraud.

Corporate Shares

Financial instruments representing ownership in a company, typically entitling the shareholder to a portion of the profits.