QUESTION 23 As a stockholder and bondholder of a company, you have been receiving dividends and coupon (interest) payments. In what ways are dividends similar to and different from coupons onbonds? Dividends and coupons are forms of payments to investors. Dividends are typically associated with equity investments, and coupons are associated with debt investments. Dividends are payments to stockholders based on a firm's profits, whereas, coupons are fixed payment to bondholders and are independent on the firm's profits. All of the above. QUESTION 24 In what ways does the Standard & Poor's 500 Index of measuring the stock market performance differ from the Dow Jones Industrial Index? The S&P's 500 index takes into account the stock prices of 500 of the largest firms, which is less than the DJIA The S&P's 500 index is a price-weighted index, where the DJIA is a value-weighted index. Larger firms are less important in the S&P 500 than in the DJIA The S&P's 500 index takes into account the prices of more stocks and it uses a different weighting scheme. QUESTION 25 If Mark wanted to purchase newly issued stock from a new computer company, she would purchase this in a primary market. secondary market money market. CD market