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Can someone help me please! 1. Which of the following statements is true regarding indexes and averages? Multiple Choice An index compares current stock prices

Can someone help me please!

1. Which of the following statements is true regarding indexes and averages?

Multiple Choice

  • An index compares current stock prices with the top stock in the market while an average is the average of certain stock prices.

  • An index compares current stock prices with those in a specified base period while an average is the average of certain stock prices.

  • An index only lists public companies while an average considers all companies.

  • An index is the average of certain stock prices while an average is simply the average stock price of all publicly traded companies.

  • An index is a price-weighted median while an average is a price-weighted average.

2. A social media company needs money to expand, so it decides to issue stock. The first-time sale of the companys stock directly to the public is called a

Multiple Choice

  • primary sale.

  • new issue.

  • follow-on offering.

  • preliminary bid.

  • fresh deal.

3. Which of the following is true of commercial paper?

Multiple Choice

  • It is insured by the government, so investors cannot lose money.

  • It is the most popular long-term investment for small businesses.

  • It acts as a verbal promise to pay a specific amount of money.

  • It is backed only by the name and reputation of the issuing company.

  • It is only sold to sole proprietors and small businesses.

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