The Primacy Effect Is a Rater Error in Which the Rater

question 19

True/False

The primacy effect is a rater error in which the rater gives greater weight to information received first.

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Definitions:

Stock Split

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.

Shares Outstanding

The cumulative amount of a company's shares that have been approved, distributed, and acquired by shareholders and currently possessed by them.

Debt-equity Ratio

A ratio used to express the relative use of equity and debt in funding a company’s assets.

Capital Spending

Expenditures by a company on major physical goods or services that are expected to generate economic benefits in the future.