BUS 220 Chapter 13

An example of "insider trading" is:

A company executive passing nonpublic information about an upcoming acquisition to a friend, who traded for a profit.

In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a:

Bear Market

Investors may receive an economic benefit from the ownership of stock by receiving:

Both dividends and capital gains.

Corporate governance involves the exercise of control over a company's:

Entire corporate direction

A reason for institutions becoming more assertive in promoting the interests of their member investors is:

Expressing dissatisfaction with management performance by selling a large block of stock would reduce the value of the institution's holdings.

Investors always choose to invest in the stock of companies that pay high dividends.

False

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders' rights by making sure that stock markets are run fairly.

Since the 1960s, growth in the numbers of institutional investors in the United States has been phenomenal.

True

The two main types of investors that own shares of stock in U.S. corporations are individuals and institutions.

True