A Stock Issued by a Company That Has a Capitalization

question 42

Multiple Choice

A stock issued by a company that has a capitalization of $300 million or less is called a _______ stock.

• A) blue chip
• B) income
• C) micro cap
• D) midcap
• E) penny

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Perfect Competitor

A market structure characterized by an infinite number of small firms, identical products, and free entry and exit, ensuring no single firm can influence market prices.

Industry-Wide Supply and Demand

The total quantity of goods and services that are available for purchase across an entire industry, alongside the total quantity that consumers are willing and able to buy within that industry.

Short-Run

A period in economics where at least one factor of production is fixed, and firms can't alter all inputs.