Most Stock Indexes

question 9

Multiple Choice

Most stock indexes

• A) Have a constant divisor that is equal to the number of securities in the index
• B) Are based on the 300 largest Canadian companies
• C) Reflect both dividends and capital gains
• D) Are based on 100 stocks
• E) Are based on capital gains only

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Definitions:

Steamed Milk

Milk that has been heated and aerated through the introduction of steam, often used in coffee beverages.

Equilibrium Quantity

The quantity of goods or services supplied that is exactly equal to the quantity demanded at the market equilibrium price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in a balance between production and consumption.

Equilibrium Quantity

The volume of commodities or services provided that coincides with the volume requested at the price of market balance.