A Stock Index Is

question 104

Multiple Choice

A stock index is

• A)an average of a group of stock prices.
• B)an average of a group of stock yields.
• C)a measure of the risk relative to the profitability of corporations.
• D)a report in a newspaper or other media outlet on the price of the stock and earnings of the corporation that issued the stock.

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Definitions:

Integrated Merger

A merger between companies at different stages in the production process of a particular industry, often aimed at reducing costs or securing supplies.

Vertical Merger

A merger between two or more companies operating at different stages in the production process of a good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often leading to consolidation in the market.

Herfindahl Index

A measure of market concentration, calculated by squaring each company's market share in the industry and then summing the squares.