Recently Enacted Listing Requirements of the New York Stock Exchange

question 22

Multiple Choice

Recently enacted listing requirements of the New York Stock Exchange focuses attention on independent directors. How does the NYSE define an independent director?

• A)no material relationship with the listed corporation
• B)not a member of corporate management
• C)owns fewer than 10,000 shares of the corporation's stock
• D)does not meet regularly with the board of directors

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Definitions:

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Disposable Income

The financial resources families have for expenditures and savings after income taxes are removed.

Disposable Income

The total funds available to families for spending and saving after subtracting income tax.

Transfer Payments

Payments made by governments to individuals without any expectation of a good or service in return, such as welfare or unemployment benefits.