Question

10. The Standard & Poor's 500 Index:

a. gives more weight to large companies than small companies.

b. actually includes approximately 580 of the largest corporations in the U.S.

c. is a price-weighted index.

d. assigns equal weight to all the prices of all the stocks in the index.

11. The Nasdaq Composite Index is:

a. made up of over 50,000 firms traded on the Over-the-Counter market.

b. a price-weighted index.

c. made up of mainly newer firms, and heavily influenced by technology and internet companies.

d. the most broadly based index in use.

12. The dividends that stockholders receive are:

a. fixed by contract and paid annually.

b. traditionally distributions from profits.

c. paid before all other obligations of the company are met.

d. always equal to the average amount of interest paid to a bond holder, adjusting for the value of the holdings.

Answer 1

Ans 10) b. actually includes approximately 580 of the largest corporations in the U.S.

The Standard & Poor's 500 Index actually includes approximately 580 of the largest corporations in the U.S.

Ans 11) b. a price-weighted index.

The Nasdaq Composite Index is a price-weighted index.

Ans 12) b. traditionally distributions from profits.

The dividends that stockholders receive are traditionally distributions from profits.