MNCs Generally Do Not Need to Hedge Because Shareholders Can

question 91

True/False

MNCs generally do not need to hedge because shareholders can hedge their own risk.

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Definitions:

Desired Allotment

The quantity of shares an investor hopes to receive during a public offering or other allocation process.

Ex-Rights Date

The first day a stock trades without the right to receive a specific dividend or distribution announced by the company.

Stock Trades

The act of buying, selling, or exchanging shares of stock in the financial markets.

Holder-of-Record Date

The date set by a corporation by which an individual must be registered as a shareholder to be eligible to receive dividends or distributions.