Which of the Following Will NOT Directly Affect the Size

question 53

Multiple Choice

Which of the following will NOT directly affect the size of a nation's capital stock?

• A)resources reallocated to the production of food
• B)a new machine installed in a company's plant
• C)a newly constructed factory
• D)an eighteen-year-old student enrolled in university as a full-time student

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Definitions:

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares.

Common Stock

Equity shares issued by a company giving shareholders voting rights and a residual claim on corporate earnings and assets.

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.

Shares

Units of ownership interest in a corporation or financial asset, which provide dividends and voting rights to the shareholder.