What Effect Does a Stock Substitution or Stock Split Have

question 46

Multiple Choice

What effect does a stock substitution or stock split have on a price-weighted series?

• A) Index remains the same; divisor will increase/decrease.
• B) Divisor remains the same; index will increase/decrease.
• C) Index and divisor will both remain the same.
• D) Index and divisor will both reflect the changes (immediately).
• E) None of these are correct.

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Definitions:

Enzymatic Degradation

Enzymatic degradation is the breakdown of substances into simpler molecules by enzymes, playing a crucial role in digestion, metabolism, and clearance of wastes.

Glial Cells

Non-neuronal cells in the central and peripheral nervous system that provide support and protection for neurons, partaking in a wide range of critical functions including insulation (via myelin), support, and nutrition.

Synaptic Cleft

The small gap between neurons at a synapse, through which neurotransmitters are released, allowing for communication between neurons.

Neural Transmission

The process by which neurons communicate with each other through electrical impulses and neurotransmitters across synapses.