Foreign Stock Markets Are Frequently Characterized by Controlling Shareholders for the Individual

question 14

Multiple Choice

Foreign stock markets are frequently characterized by controlling shareholders for the individual publicly traded firms. Which of the following is NOT identified by the authors as typical controlling shareholders?

• A) the government (for example, privatized utilities)
• B) institutions (such as banks in Germany)
• C) family (such as in France)
• D) All of the above were identified by the authors as controlling shareholders.

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Definitions:

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good or service is highly responsive to changes in its price.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of that good supplied by an industry at various price levels.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, including high costs, strict regulations, and established brand loyalty.