Which of the following statements is correct? Restricted stocks are shares of stock issued to executives that have limitations on voting rights. The Capital Market Line graphs the relationship between return and risk (beta). Penny stocks are the stocks of small companies that are priced below $1 per share. All of these choices are correct.

Question

Andrew Chen

Social Studies

26 October, 02:11

Which of the following statements is correct? Restricted stocks are shares of stock issued to executives that have limitations on voting rights. The Capital Market Line graphs the relationship between return and risk (beta). Penny stocks are the stocks of small companies that are priced below $1 per share. All of these choices are correct.

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Answers (1)

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Brynlee Ellis · Answer 1

Of the following statements all of these choices are correct.

Explanation:

A. Restricted stocks are shares of stock issued to executives that have limitations on voting rights.

Correct. Restricted stock refers to shares of ownership not registered in a corporation that are issued to corporate affiliates, like executives. There are two variations of restricted stock, one have limitations on voting rights and the other one does not.

B. The Capital Market Line graphs the relationship between return and risk (beta).

Correct. The capital market line (CML) represents relationship that optimally combine return and risk.

C. Penny stocks are the stocks of small companies that are priced below $1 per share.

Correct. Penny stocks trade at a very low price. In some western markets, for example, shares it below $1.

Correct answer: All of these choices are correct.