Which of the following statements is true about international equity (stock) markets?
A) Japanese households are large investors in common stock.
B) Commercial banks are generally not involved in the international securities business.
C) Some foreign investors are more risk-averse than their counterparts in the United States and prefer dividend income over less certain capital gains.
D) Foreign exchanges never include the listing of U.S. firms.

Question

Quizplus · Accepted Answer

Some foreign investors are more risk-averse than their counterparts in the United States and prefer dividend income over less certain capital gains. This is because their investment culture and regulations may prioritize steady income over high-risk investments. The other options are incorrect as A) Japanese households are indeed large investors in common stock, B) commercial banks are involved in the international securities business, and D) foreign exchanges may include the listing of U.S. firms.

Which of the Following Statements Is True About International Equity