Sales of Both Bathing Suits and Ice Cream Tend to Rise

question 4

Multiple Choice

Sales of both bathing suits and ice cream tend to rise in the warmer months of the year and fall in the colder months.This means that bathing suit sales are

• A)positively correlated with ice cream sales.
• B)negatively correlated with ice cream sales.
• C)driving ice cream sales.
• D)driven by ice cream sales.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the stock's liquidity, though the market capitalization remains the same.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders proportionately.

Market Price

The market price currently for acquiring or selling a service or asset.