Market capitalization is calculated by multiplying:

a) The stock price by the number of shares outstanding

b) The stock price by the company's net income

c) The stock price by the dividend yield

d) The stock price by the market index

20. FINRA Rule 2111 requires broker-dealers to make investment recommendations that are:

a) Suitable for the client's risk tolerance and objectives

b) Based on the broker-dealer's personal preferences

c) Guaranteed to provide high returns

d) Approved by the SEC

21. What does the term "emerging market" refer to in finance?

a) New stock exchanges that are emerging in the industry

b) Markets that are experiencing a downturn in economic activity

c) Economies of countries that are in the early stages of rapid growth and industrialization

d) Markets that are declining in popularity among investors

22. When a company repurchases its own shares from the market, it is called:

a) Dividend distribution

b) Stock split

c) Tender offer

d) Initial public offering (IPO)

23. In options trading, the party who buys the option is referred to as the:

a) Writer

b) Holder

c) Underwriter

d) Dealer