In Comparison to the NYSE

question 95

Multiple Choice

In comparison to the NYSE,

• A) NASDAQ has less company listed.
• B) total share volume is lower on the NASDAQ.
• C) firms listed on the NASDAQ tend to be smaller.
• D) NASDAQ firms exceed NYSE listed firms in total capitalization.

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Definitions:

Debt

A sum of money lent by one party to another, with the agreement it will be repaid later, typically with additional interest.

Financial Leverage

Taking advantage of borrowed finances to raise the possible outcomes of an investment.

Business Risk

The exposure a company or investor has to factor(s) that will lower its profits or lead to a loss.

Financial Risk

Financial risk is the possibility of losing money on investments or business operations due to market fluctuations, credit issues, or other financial uncertainties.