Question

In: Finance

Which of the following statement is correct regarding the companies listed in the US stock exchanges?...

Which of the following statement is correct regarding the companies listed in the US stock exchanges? 1 point

a. The newly listed companies are profitable companies because investors would not invest in companies that are losing money.

b. All S&P 500 companies have lower credit ratings than Russel 2000 companies

c. Listed companies market valuation can be calculated daily.

d. Both bulletin board companies and pink sheet companies are traded over the counter and are subjected to SEC regulation

Solutions

Expert Solution

Option c is correct

Market capitalisation=market price of the company* number of shares outstanding.

It will be calculated on the closing price of the share on a daily basis.

Other options are incorrect


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