1._____ tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness.

a. Consumer staples

b. Cyclical companies

c. Consumer durable goods

d. Capital goods

e. Financial stocks

2.

The _____ gives the investment bank the right to buy 15 percent more shares within the next 30 days.

a. winner's curse

b. underwriters fee

c. red shoe option

d. red herring

e. overallotment option

3.

Corporations can use many tools in order to prevent takeovers, including

a. retaining the most profitable part of the company.

b. requiring a minority of shareholder votes to approve selling the firm.

c. staging a walk out.

d. poison pills.

e. non-staggered boards.