Systemic Effects Arise When

question 6

Multiple Choice

Systemic effects arise when:

• A) changes result from government legislation.
• B) market-wide changes in share prices come from the economic system.
• C) an announcement is made regarding the future prospects of a particular company.
• D) the takeover of a large public company is announced.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote on corporate matters.

Par Value

The face value of a bond or stock as stated by the issuing company.

Cash Dividend

A disbursement by a company to its stockholders, typically coming from earnings.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee and make major decisions regarding the company's affairs.