Index Funds

question 7

Multiple Choice

Index funds

• A) are passively managed.
• B) are actively managed.
• C) may be either passively or actively managed.
• D) are neither passively nor actively managed.

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Definitions:

Recognizes Dividends

The process by which a company records the payment of dividends to its shareholders in its financial statements.

Reported Net Income

The net income that a company reports in its financial statements, which represents the company's total earnings after expenses, taxes, and costs are subtracted from total revenue.

Total Proceeds

The entire sum of money received from a transaction or series of transactions, often before any deductions or expenses are taken into account.

Sustaining Stock Price

Efforts or strategies employed by a corporation to maintain or support the current market price of its shares.