The NASDAQ

question 107

Multiple Choice

The NASDAQ:

• A) weights individual stocks equally.
• B) gives greater weight to larger stocks than does the Dow.
• C) gives greater weight to high-tech stocks than does the Dow.
• D) has 30 stocks.

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Definitions:

Installment Method

is an accounting technique used to recognize revenue and expenses over time as payments are made or received, rather than at the time of transaction.

Basis

The amount of an investment in property for tax purposes; used to calculate gain or loss on a sale or other disposition of the property.

Gain Recognized

The profit realized from the sale or exchange of an asset, which must be reported for tax purposes.

Involuntary Conversion

Involuntary conversion is the process whereby property is destroyed, stolen, condemned, or disposed of under the threat of condemnation, and the owner receives compensation or insurance recovery.