Are the buying and selling of stocks centralized activities? Why or why not?

A. Yes, the New York Stock Exchange is the principal exchange for the nations of the world.

B. No, people can buy stocks anywhere, and they do not need to go through a market.

C. Yes, the world’s stock markets are coordinated exchanges, and they are dependent on one another.

D. No, there are many stock markets around the world, and they are independent of one another.

Respuesta :

Answer:

The correct option is No, there are many stock markets around the world and they are independent of one another.

Further Explanation:

Stocks: Stock is a type of investment that gives ownership share in a company. People buy stocks as they think investment will go up over time.

There are mainly two types of stocks in the market that include:

  1. Common Stock
  2. Preferred Stock

Common stock can vote to board of directors, mergers and affairs of corporation while preferred stock includes both common stocks as well as bonds. The value fall and rise with the company’s stock price.

In preferred stock, mostly they make a fixed amount. This is the reason most of the investors do not sell their preferred stocks.

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Answer details:

  • Grade: Middle School
  • Subject: Accounts
  • Chapter: Finance

Keyword:

Buying and selling, stocks, centralized activities, new York stock exchange, principal nation, world, people, anywhere, market, stock market, coordinated exchanges, dependent, independent, investment, ownership, share, common stock, preferred stock

Answer:

The Correct Answer is D.

Explanation:

A stock is the share in the ownership of any company.

There are two different types of stocks:

  • Common stocks
  • Preferred stocks

Common stock is the most common type of stock which is purchased by many people. this stock represents the ownership of the company and a claim on the part of its profit.

Preferred stocks do not enjoy the same voting but investors of this have usually guaranteed a fixed dividend.