A stock broker passing an inside tip to a client but

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A stock broker passing an "inside tip" to a client, but not trading for his or her own account. 3 points QUESTION 24 1. 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: Bull market. Volatile market. Bear market. None of the above. 3 points QUESTION 25 1. Corporate governance involves the exercise of control over a company's: Finance and accounting departments. Entire corporate direction. Manufacturing facilities. Marketing and human resources departments. 3 points QUESTION 26 1. Which of the following is not a function of board committees? The executive committee works closely with top managers on business matters.
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The audit committee reviews the company's financial reports. The compensation committee administers and approves salaries and benefits. The finance committee works closely with the human resources department to fund employee salaries. 3 points QUESTION 27 1. Which of the following is not true about institutional investors? Institutions invest their funds by purchasing shares of stock in corporations. The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s. Pension funds and university endowments are examples of institutional investors. Institutions accounted for 63 percent of the value of all equities owned in the U.S. in 2010. 3 points QUESTION 28 1. Which of the following arguments opposes the idea of high executive pay? High salaries provide an incentive for innovation and risk taking. Not many individuals are capable of running today's large, complex organizations. Top athletes and entertainers make a lot of money, so top executives should, too. High salaries divert resources that could be used to invest in the business. 3 points QUESTION 29 1. Social investors seek to eliminate from their investment portfolios companies that: Pollute the environment. Discriminate against employees. Make dangerous products like tobacco or weapons. All of the above.
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3 points QUESTION 30 1. The mission of the Securities and Exchange Commission (SEC) is to: Protect shareholders' rights by making sure that stock markets are run fairly. Protect companies from hostile takeovers. Ensure that institutional investors do not take control of company management. Ensure that the federal treasury receives its share of the revenues from stock trading.
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