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What is a common reason for businesses to use derivatives? A. For tax benefits B. To hedge or reduce risk C. To gain consumer approval

  1. What is a common reason for businesses to use derivatives?

    A.

    For tax benefits

    B.

    To hedge or reduce risk

    C.

    To gain consumer approval

    D.

    To meet environmental requirements

  2. What are the two ways that you can earn a profit trading stocks?

    A.

    Capital gains and earnings payments

    B.

    Earnings payments and dividends

    C.

    Capital gains and dividends

    D.

    Capital gains and stock splits

  3. Which of the following is a true statement about how stock prices are determined?

    A.

    Stock prices for a firm are set by the firm's CEO

    B.

    Stock prices for a firm are set by the firm's Board of directors

    C.

    Stock prices for a firm are set by the stock exchange on which the firm is listed

    D.

    Stock prices for a firm are set by the market (supply and demand forces)

  4. What is a smart way to learn how to trade stocks?

    A.

    Only trade stocks that are one of the Fortune 500 companies.

    B.

    Only trade one particular company's stock

    C.

    Obtain a paper account and practice without risking real money

    D.

    Only trade stocks that have a price of less than $2.00

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