The Dow Jones Industrial Average (DJIA) is a price-weighted index.

The NASDAQ is associated with a stock exchange.

The secondary market for capital market securities is important because it provides funds directly to deficit spending units.

Primary capital market securities provide marketability and possibilities for investors to alter the riskiness of their portfolios.

Shares with betas less than one tend to have more price variability than the market.

Limited liability of stockholders protects them from losses on their stock portfolio.

The Australian Stock Exchange (ASX) is an example of a secondary market.

Ordinary shareholders enjoy limited liability, which means that their losses are limited to the original amount of their investment.

A price-weighted index is computed by calculating the total market value of the firms in the index and the total market value of those firms on the previous trading day.

Diversification attempts to lower or eliminate the unsystematic risk of a portfolio of securities.

A market with breadth has a large number of diverse investors.

Dividend reinvestment schemes allow shareholders to substitute dividends for extra shares.

Cumulative preferred stockholders are assured of receiving dividends each year.

A stock, which is expected to pay a $4 dividend next year, growing constantly at 6%, is priced to yield a required return of 18%, is selling for $33.33.

Convertible securities are either corporate bonds or preference shares that convert to ordinary shares at the investor's or issuer's option.