In Addition to the Number of Stocks Represented, a Difference

question 23

Multiple Choice

In addition to the number of stocks represented, a difference between the TSX 300 and the Dow is that the TSX 300:

• A)Dates back to the 19^th century while the Dow is a recent innovation
• B)Is value-weighted while the Dow is an equal-weighted index
• C)Includes foreign stocks while the Dow is domestic
• D)Index includes dividends in its return while the Dow does not

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Definitions:

Check Form

A paper instrument that instructs a financial institution to pay a certain amount of money from a person's account to the designated recipient.

Purchase

The act of buying goods or services, resulting in a financial transaction.

Bill

A document indicating an amount owed for goods or services provided.

Pay Later

A payment arrangement that allows a buyer to purchase goods or services now and pay for them at a future date.