Adam Smith's Invisible Hand Refers to

question 149

Multiple Choice

Adam Smith's invisible hand refers to

• A)the government's unobtrusive role in ensuring that the economy functions efficiently.
• B)property ownership laws and the rule of the court system.
• C)the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole.
• D)the laws of nature that influence economics decisions.

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Definitions:

Issued

When a company distributes or sells new securities, shares, or other financial instruments to investors.

Reacquired

Refers to assets, often shares, that a company buys back from investors or stakeholders.

Par Value

The stated or principal value of a stock or bond as declared by the issuer.

Paid-In Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the excess over par value.