A Stock That Is Issued by a Corporation That Has

question 60

Multiple Choice

A stock that is issued by a corporation that has a large amount of capitalization is called a(n) ____________ stock.

• A)small-cap
• B)medium-cap
• C)large-cap
• D)unlimited-cap
• E)giant-cap

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Definitions:

Dividend Policy

Guidelines a company follows to decide how much it will pay out to shareholders in dividends, determined by factors like current profitability and future investment plans.

Return on Investments

A performance measure used to evaluate the efficiency of an investment, comparing the return to the investment’s cost.

Share Repurchase

A program by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock and potentially increasing the value of remaining shares.

Excess Cash

This refers to the amount of money a company holds that is beyond what is required for its operational needs and potential investments.