Small Company Stocks Have Historically Had Higher Average Annual Returns

question 128

True/False

Small company stocks have historically had higher average annual returns than large company stocks,and also a higher risk premium.

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Definitions:

Benjamin Franklin

A Founding Father of the United States, renowned for his contributions to the drafting of the Declaration of Independence and the U.S. Constitution, as well as his inventions and scientific discoveries.

Dividends

The part of corporate profits paid to its shareholders.

Payroll Tax

Taxes imposed on employers or employees, often calculated as a percentage of the salaries that employers pay their staff, funding social security and healthcare programs.

Social Security Tax

A charge imposed on both workers and their employers to finance the Social Security system, offering financial support to retirees, individuals with disabilities, and children of workers who have passed away.