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48. When corporations elect to issue two or more shares of stock to existing sto

ID: 2804411 • Letter: 4

Question

48. When corporations elect to issue two or more shares of stock to existing stockholders for each share they own, they have initiated a(n) stock split b. dividend spread c. share dividend d. earnings split e. all of the above 49. To reduce the risk of investing in an individual stock, an ownership position can be achieved by purchasing shares in a(n): in many different companies indexed security. mutual fund. diversification bond. D. stock cooperative. e. all of the above industrial stocks. 50. The Dow Jones Industrial Average represents the average price of G)11 b. 30 C. 500 d. 1000 e. all of the above

Explanation / Answer

selected options for question 48 and 49 are correct. However, in case question of 50, the correct answer is 30 (option b) as Dow Jones Industrial Average is an average of 30 industrial stocks.

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