A portfolio of small-company common stocks is best described as the stocks of the firms which: ...
Question:
A portfolio of small-company common stocks is best described as the stocks of the firms which:
a) are included in the Samp;P 500 index.
b) represent the smallest twenty percent of the companies listed on the NYSE.
c) trade publicly for $5 a share or less. have gone public within the past five years.
d) are too small to be listed on the NYSE.
Small Cap Stocks:
This question calls for a general understanding of the category of companies known as small cap stocks. This term refers to companies that have relatively small market capitalizations (the market value of a company's outstanding shares).
The definition of small cap is somewhat ambiguous and varies across the investing universe. Generally, a small cap is a firm with a market capitalization between $300 million and $2 billion.
Answer and Explanation: 1
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View this answerThe best possible answer is b) represent the smallest twenty percent of the companies listed on the NYSE. The other answers are erroneous for the...
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Stocks: Understanding Investment Performance
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Stocks are an investment into the shares or ownership of a company and repay the shareholder dividends throughout the year. Learn more about stocks, investment performance, dividends, the role of the stock exchange, and how to calculate earnings.
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