Stock Market Averages and Indexes Are Commonly Used to Measure

question 90

Multiple Choice

Stock market averages and indexes are commonly used to measure the

• A)specific behavior of companies.
• B)general behavior of stock prices.
• C)specific behavior of alternative investments.
• D)specific behavior of the economy.

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Definitions:

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage.

Common Dividends

Dividends distributed to holders of common stock, often based on the company's profitability and declared by its board of directors.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.