Chapter 7-8 Test

becoming security for another's debt

electronic message board indicating stock prices and transactions

According to the text, what disadvantage often results from corporations' great size?

Stockholders can be called to vote on

A business with fewer than thirty-five shareholders can incorporate as a(n)

a collection of stocks from different individual corporations

president of a corporation

The fact that spending on services makes up the majority of US consumer spending makes which of the following important?

A bear market is one in which the market is rising.

someone to whom a debt is owed

A corporation is more likely to obtain low-interest loans than a partnership

If a corporation files for bankruptcy and sells all its assets, who would be the last to receive payment from proceeds?

person specializing in buying and selling stocks for clients

In the eyes of the law, a corporation possesses which two important qualities?

someone who agrees to pay back a loan if the original borrower cannot

If you buy 70,000 shares out of 280,000 shares of a company's stock, how much of the company do you own?

a distribution of a portion of a company's profits

What is the chief advantage of incorporating a company?

an investor with no liability and few or no duties in the company

fee paid for a stockbroker's services

The first American stock exchange was located in

Stock markets are important to many Americans' retirement planning

What is the term for a corporation's first sale of stock?

privately managed stock portfolios

The stock exchange famous for having no 'floor' is

Which of the following is considered the best health indicator of American industry?

According to the textbook, corporations' complex organizational structure can sometimes lead to accusation of

Charles Dow began his stock index with one hundred companies.

The stock market crash of 1929 was a result of

The SEC was founded following which important historical event?

portions of ownership in a corporation

Which of the following was founded by Charles Dow and Edward Jones?

person on the trading floor who makes requested trades

Stock exchanges first appeared in France and Austria