As Compared to the Total Value of Shares Outstanding, the Amount

question 55

Multiple Choice

As compared to the total value of shares outstanding, the amount of new stock issues in a typical year is which of the following?

• A)relatively small
• B)relatively equal
• C)relatively large
• D)constantly changing

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Definitions:

System 1

A term from psychology, referring to the fast, automatic, and often subconscious way of thinking, as opposed to the slower, more deliberate thought processes of System 2.

System 2

A term often used in behavioral economics, referring to slow, deliberative, and analytical thinking, contrasted with fast, instinctive, and emotional 'System 1' thinking.

Neoclassical Assumption

Underlying principles of neoclassical economics that include rationality, individuals maximizing utility, firms maximizing profits, and markets tending toward equilibrium.

Rational Behavior

Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility. See rational.