16. What is a “proxy vote”?
a) A vote cast on behalf of a shareholder by another individual or institution
b) A method of voting used in electoral elections
c) A vote taken by a company’s board of directors
d) A vote taken by the CEO of a company
17. What is a “privilege share”?
a) A share that carries special rights and benefits compared to ordinary shares
b) A share issued by the government to raise funds
c) A low-priced share
d) A share that is only available to institutional investors
18. What is a “stock split”?
a) The process of merging two companies
b) The process of dividing a company into multiple subsidiaries
c) The process of increasing the number of outstanding shares of a company
d) The process of decreasing the number of outstanding shares of a company
19. What does the term “capital gain” refer to in the capital market?
a) The profit earned from selling a security at a higher price than its purchase price
b) The dividend earned from owning a security
c) The interest earned from investing in government bonds
d) The loss incurred from selling a security at a lower price than its purchase price
20. What is a “stop-loss order”?
a) An order to sell a security when its price falls below a specified level
b) An order to sell a security when its price rises above a specified level
c) An order to buy a security when its price falls below a specified level
d) An order to buy a security when its price rises above a specified level
