Which of the Following Statements About Ownership and Financial Markets

question 58

Multiple Choice

Which of the following statements about ownership and financial markets is true?

• A) In the United States, corporate ownership and access to capital is far more concentrated than in most other countries.
• B) Ninety percent of American households own stock in companies either directly or indirectly through mutual funds and pension funds.
• C) Recent tax law changes in many countries have made stock options more attractive, but limited ownership of many companies remains the rule.
• D) Linking performance bonuses to increased shareholder value makes sense in the large conglomerates in Germany.

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Definitions:

Buyers Pay

Refers to situations where the responsibility for covering the cost of a transaction, tax, or fee lies with the buyer rather than the seller.

Sellers Receive

The revenue or payment that sellers get in exchange for providing goods or services in the market.

Deadweight Loss

A loss of economic efficiency that can occur when the optimal quantity of a good or service is not produced or traded.

Tax Per Unit

A fixed amount of tax imposed on each unit of a product or service sold.