According to Contrarians, the Big Decline in the Stock Market

question 253

Multiple Choice

According to contrarians, the big decline in the stock market during the Great Recession was

• A) a great opportunity to invest in stocks.
• B) proof that the stock market was not as sound an investment as most people thought.
• C) a sign that more government regulation was needed to prevent big losses.
• D) proof that the future of capitalism should rely more on small, unincorporated businesses rather than big corporations.

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Definitions:

Stockholders' Equity

The amount of capital given to a company by its shareholders plus its retained earnings.

Intangible Assets

Non-physical assets such as patents, trademarks, and copyrights that have value to a business.

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories like current, long-term, property, plant, and equipment, to provide more detailed information.

Current Ratio

It's a financial ratio that calculates whether a corporation can cover its obligations that need to be paid within one year, by dividing the current assets by the current liabilities.