The _____________ Heuristic Refers to the Notion That We Use

question 70

Multiple Choice

The _____________ heuristic refers to the notion that we use a number as a starting point on which to anchor our judgment.

• A) availability
• B) anchoring and adjustment
• C) framing
• D) representativeness

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Definitions:

Common Shares Outstanding

The total number of shares of common stock currently held by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Additional Paid-In Capital

The excess of the amount paid by investors over the par value of a stock during equity issuance.