Which of the Following Is Not an Example of Fulfilling

question 41

Multiple Choice

Which of the following is not an example of fulfilling social objectives through stock ownership?

• A) Selling stock of companies that did business in South Africa when it had a policy of racial discrimination.
• B) Divesting from Chinese companies that made products using forced labor.
• C) Selling stock of companies with a below-market rate of return.
• D) Not investing in Burmese companies that had been accused of human rights abuses.

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Definitions:

Ex-Dividend Date

The specific date on which a declared dividend is set, after which a stock buyer is not entitled to the declared dividend.

Date of Record

This is the date set by a corporation upon which the shareholders must be on the company's books in order to receive a declared dividend or participate in corporate actions.

Corporate Dividend Payout

Corporate dividend payout refers to the portion of a company's earnings distributed to shareholders in the form of dividends.

Information Content Effect

The market reaction attributed to announcements or news, which signals new information to investors about a company’s value.