Stock Index Futures and Options Allow an Investor To

question 35

Multiple Choice

Stock index futures and options allow an investor to:

• A)select a security from any of those included in the index.
• B)gain or lose from the movement of the index.
• C)trade any of the securities in the index.
• D)None of the above

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Definitions:

Dividend Declarations

The announcement by a company's board of directors to pay a dividend to its shareholders, specifying the amount and date.

Investing Activities

Refers to financial transactions involving the acquisition or disposal of long-term assets and investments not related to the entity's primary business operations.

Dividend Payments

Disbursements made by a corporation to its shareholders, usually in the form of cash or stock.