Capitalization Is ___________

question 122

Multiple Choice

Capitalization is ___________

• A)issued by a company that has a capitalization of $150 million or less.
• B)issued by a corporation that has the potential to earn profits above the average profits of all firms in the economy.
• C)the total amount of securities-stocks and bonds-issued by a corporation.
• D)follows the business cycle of advances and declines in the economy.
• E)A safe investment that generally attracts conservative investors

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Definitions:

Stock Index

An indicator used to measure and report value changes in a selection of stocks, which represents a specific segment of the stock market.

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.

Cash Settlement

The provision of some futures contracts that requires not delivery of the underlying assets but settlement according to the cash value of the asset.