To facilitate the exchange of goods and services

To provide a platform for companies to raise capital

To regulate the prices of commodities

To manage the national economy

Stocks represent ownership in a company, while bonds are loans made to a company

Stocks provide fixed returns, while bonds offer variable returns

Stocks are more liquid than bonds

Bonds are more secure than stocks

The EMH states that stock prices fully reflect all available information

The EMH suggests that stock prices are determined by supply and demand

The EMH implies that it is impossible to consistently outperform the market

The EMH is only applicable to large and well-established companies

The DDM is a method for valuing stocks based on their future dividend payments

The DDM assumes that stock prices are driven by current earnings

The DDM is only applicable to companies that pay dividends

The DDM is a more complex valuation method compared to the price-to-earnings (P/E) ratio

The P/E ratio compares a stock's price to its annual earnings per share

The P/E ratio is a measure of a company's profitability

A higher P/E ratio indicates that investors are willing to pay more for each dollar of earnings

The P/E ratio is not affected by a company's debt levels

The book value is the value of a company's assets minus its liabilities

The book value represents the original price paid for a stock

The book value is the same as the market value of a stock

The book value is not a relevant factor in stock valuation

Liquidity refers to the ease with which stocks can be bought and sold

Liquidity is important for maintaining market efficiency

High liquidity reduces the risk of stock price volatility

Liquidity is not a concern for long-term investors

Rising interest rates tend to lower stock prices

Falling interest rates tend to boost stock prices

Interest rates have no impact on stock prices

The relationship between interest rates and stock prices is unpredictable

To increase the number of outstanding shares of a company

To reduce the number of outstanding shares of a company

To raise capital for the company

To change the company's name or ticker symbol

A bull market is characterized by rising stock prices, while a bear market is characterized by falling stock prices

A bull market is driven by positive economic conditions, while a bear market is driven by negative economic conditions

Bull markets typically last longer than bear markets

Bear markets are more common than bull markets

Technical analysis involves studying historical price data to identify trading opportunities

Technical analysts believe that stock prices move in predictable patterns

Technical analysis is a more reliable method of stock valuation compared to fundamental analysis

Technical analysis is only useful for short-term trading strategies

Intrinsic value represents the true worth of a stock based on its fundamentals

Intrinsic value is determined by analyzing a company's financial statements

Intrinsic value is the same as the market value of a stock

Intrinsic value is not a relevant factor in stock valuation

EPS represents a company's profit allocated to each outstanding share

EPS is used to calculate the dividend payout ratio

EPS is a key factor in determining a company's intrinsic value

EPS is not relevant for companies that do not pay dividends

Institutional investors are large organizations that invest in stocks on behalf of their clients

Institutional investors include pension funds, mutual funds, and insurance companies

Institutional investors typically have a long-term investment horizon

Institutional investors are not subject to the same regulations as individual investors

Market orders are executed at the best available price

Limit orders are executed at a specified price or better

Stop orders are triggered when a stock reaches a certain price

All of the above