The New York Stock Exchange (NYSE) Requires Corporations to Have

question 73

Multiple Choice

The New York Stock Exchange (NYSE) requires corporations to have

• A) a majority of the board be outsiders.
• B) cumulative voting.
• C) at least one employee director as a representative on the board.
• D) at least two outside directors providing stockholder representation.
• E) an audit committee composed entirely of independent, outside members.

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Definitions:

Floating-Rate Debt

Floating-rate debt is a type of loan or security that has a variable interest rate, which adjusts periodically based on a benchmark or index rate.

Market Value

The current price at which an asset or service can be bought or sold in a public market.

Historical Cost

The original financial value of an asset or investment at the time of its acquisition.

GAAP

The set of accounting principles, standards, and procedures that companies use to compile their financial statements. GAAP is used to ensure consistency and comparability across organizations.