Stock a Has 10 Million Shares Issued and Stock B

question 4

Multiple Choice

Stock A has 10 million shares issued and Stock B has 5 million shares issued.What is their relative weighting if both stocks are represented in the S&P 500?

• A)equal-weightings, like all S&P 500 stocks.
• B)B has twice the weighting, to account for having fewer shares.
• C)A has twice the weighting, to account for having more shares.
• D)they are weighted according to their expected performance.

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Definitions:

Gross Profit

The difference between total revenue and the cost of goods sold, representing the profitability of a company's core activities before overhead.

Operating Expenses

The costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Current Asset

An asset that is expected to be converted into cash or used up within one year or within the business's normal operating cycle.