An Individual on the Floor of the NYSE Who Owns

question 24

Multiple Choice

An individual on the floor of the NYSE who owns a trading license and buys and sells for his or her personal account is called a:

• A) floor trader.
• B) exchange customer.
• C) specialist.
• D) floor broker.
• E) market maker.

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Definitions:

Annual Dividend

The total dividend payment a company distributes to its shareholders annually.

Rate of Return

The appreciation or depreciation in value of an investment over an agreed period, conveyed as a percentage of the investment's starting value.

Dividend Increase

An action taken by a company's board of directors to raise the amount paid out to shareholders in dividends.

Required Return

The smallest anticipated return that an investor looks to obtain by putting money into a certain asset, factoring in the risk entailed.