Question
2. During the semester a large corporation in the S&P 500 Index announced a stock split. One objective of the stock split was to become
2. During the semester a large corporation in the S&P 500 Index announced a stock split. One objective of the stock split was to become eligible for inclusion in which of the following indexes?
a. All of the above
b. SPX
c. DJI
d. None of the above
e. SPW
2. Earlier this year, you purchased $5,000 worth of an Spartan Power common stock. At the same time, your sister purchased $5,000 of Spartan Power's senior debt with a 5% coupon at par. At the time of purchase, he bond was rated AAA. Last week the company announced it invented a new battery that would likely go into every new electric car manufactured over the next 10 years. Which investment has the greatest chance of earning a large return based on the new invention?
a. Your sister's Bond Investment
b. Both have equal probability of receiving the same amount
c. Your common stock investment
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