Question
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
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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
D. To meet environmental requirements
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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
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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)
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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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Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
