The Variable Measured on the Y-Axis Increases Whenever the Variable

question 95

Multiple Choice

The variable measured on the y-axis increases whenever the variable measured on the x-axis increases. As a result, the relationship between the variables will

• A) be negatively sloped.
• B) have a slope of zero.
• C) be a vertical line.
• D) be none of the above.

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Definitions:

Stock Split

A corporate maneuver where a firm expands its existing shares into a greater quantity to increase the shares' liquidity.

Trading Range

The range within which a security’s price fluctuates over a given period, indicating the highest and lowest prices reached.

Outstanding Shares

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Flotation Costs

Flotation costs are the expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.