A stock that reinvests its earnings in the business instead of paying regular di

Question

A stock that reinvests its earnings in the business instead of paying regular dividends is called an income stock. preferred stock. common stock. a growth stock. The most trades are made on the New York Stock Exchange. on the NASDAQ-AMEX. at the Chicago Board of Trade. on the OTC market. You realize that many students who come to early morning hockey practice do not get up early enough to eat breakfast. You borrow $500 from your parents to start a bagel delivery service to the hockey rink in the early mornings. You are acting as a supplier in the capital market. a financial capital investor an entrepreneur. an intermediary. In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings account because her main priority is receiving the maximum amount of interest possible. taking a risk in hopes that she'll get a high return. liquidity, since she'll need to use the money in a short time. making a safe long term investment. Against your better judgment, you lend $ 100 to your cousin Manny, who has a reputation for failing to pay back loans. You are taking a liquidity risk inflation rate risk. time risk. credit risk.

Explanation / Answer

16. (d) a growth stock

17. (c) on the NASDAQ-AMEX

18. (b) an entrepreneur

19. (c) liquidity, since she'll need to use the money in a short time.

20. (c) inflation rate risk

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