Although Several Stock Indexes Are Available to Inform Investors of Market

question 98

Multiple Choice

Although several stock indexes are available to inform investors of market changes,the Dow Jones Industrial Average:

• A) is the broadest-based of the market indexes.
• B) is the only reliable market index.
• C) accounts for approximately 70% of U.S. market value.
• D) is the best-known of the market indexes.

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential dividends.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing current assets excluding inventory by current liabilities.

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity of the business.

Financial Data

Quantitative information about financial conditions, performance, and transactions of a business, individual, or entity.