What Action Results in Fewer Shares Outstanding,so Remaining Shareholders Own

question 92

Multiple Choice

What action results in fewer shares outstanding,so remaining shareholders own a larger proportion of the company?

• A)Stock split
• B)Stock repurchase
• C)Proxy
• D)Declaration date

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Definitions:

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, expressed as a percentage.

Expected Returns

The anticipated amount of profit or loss an investment is projected to generate.

Risk Aversion

A preference for lower-risk options over higher-risk ones, often seen in the behavior of investors seeking safer investments.

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, helping investors to assess the risk-return ratio.