1. Before a firm can sell new shares of common stock to the general public:
1-The firm must be in business for at least 10 years.
2-The firm must have earned profits for at least the three previous years.
3-The firm must issue a prospectus, and the prospectus must be approved by the Securities and Exchange Commission.
4-The firm must be a member of the New York Stock Exchange.
2. The two most important factors determining an individual or institutional investor’s investment objectives are:
1- Return requirement and risk tolerance.
2- Wealth and education.
3- Age and income level.
4- Wealth and income level.