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The economic forces which may affect the new public offering of stock

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The economic forces which may affect the new public offering of stock  [#permalink]

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New post Updated on: 29 May 2018, 06:54
1
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A
B
C
D
E

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Question Stats:

60% (01:17) correct 40% (01:15) wrong based on 346 sessions

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The economic forces which may affect the new public offering of stock include sudden downturns in the market, hedging and other investor strategies for preventing losses, loosening the interest rates in Washington, and fearing that the company may still be undercapitalized.


A. loosening the interest rates in Washington, and fearing that the company may still be undercapitalized

B. loosening the interest rates in Washington, and a fear of the company still being undercapitalized

C. a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized

D. a loosening of the interest rates in Washington, and a fear of the still undercapitalized company

E. a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

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Originally posted by nightwing79 on 27 May 2009, 21:22.
Last edited by Bunuel on 29 May 2018, 06:54, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 27 May 2009, 23:45
I will go with E

In A and C fearing is not correct

The economic forces-------------downturns----------hedging-------------loosening----------fearing is not correct because fearing is not any kind of economic force here

B and D gives the impression of fear of the company, which is incorrect because company is not feared.
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 09 Oct 2009, 18:55
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Hi tejal,

Golden rule about parallelism : In a list every component should be of the same type. I.e. if the first item in the list is a verb then everything should be a verb, similarly if the first item is a noun then all items should be nouns (as in this case)

The biggest hint in this statement is to look for the first item in the list...it is "sudden (adj) downturns (NOUN)". So we need nouns and not verbs in the following items. If we use "a loosening" and "a fear" we have nouns everywhere :) ( "loosening" = verb )
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 09 Oct 2009, 19:08
Bow down, bow down..
However,a completly new concept for me..
Elaborate a bit please..
Are you meaning to say that loosening(VERB)+ "a" =Noun ?
wow..i am in awe dude :shock:
So now between D and E is'nt D more concise??
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 09 Oct 2009, 19:17
2
Okay, let me give an example:
Lets go and smoke. => smoke = verb
Lets have a smoke.=> smoke = noun

If we talk about this statement, your next question would be why do we have "hedging" not "a hedging"? But, hedging is referred as a type of strategy ( which again makes it a noun ): "hedging and other investor strategies". So it does not require "a" :)
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SC736 - (The economic forces which may) - Grammar Doubt  [#permalink]

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New post 29 Nov 2009, 06:42
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Hello,

The economic forces which may affect the new public offering of stock include sudden downturns in the market, hedging and other investor strategies for preventing losses, loosening the interest rates in Washington, and fearing that the company may still be undercapitalized.

(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
(D) a loosening of the interest rates in Washington, and a fear of the still undercapitalized company
(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

I was able to answer the question (the OA is "E"), however not sure what rule applies when choosing "a loosening" vs "loosening". In which case an article "a" is needed?

Many thanks,

superfreak
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Re: SC736 - (The economic forces which may) - Grammar Doubt  [#permalink]

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New post 29 Nov 2009, 07:28
1
superfreak wrote:
Hello,

The economic forces which may affect the new public offering of stock include sudden downturns in the market, hedging and other investor strategies for preventing losses, loosening the interest rates in Washington, and fearing that the company may still be undercapitalized.

(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
(D) a loosening of the interest rates in Washington, and a fear of the still undercapitalized company
(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

I was able to answer the question (the OA is "E"), however not sure what rule applies when choosing "a loosening" vs "loosening". In which case an article "a" is needed?

Many thanks,

superfreak


The problem with gerunds is that although they are classified as nouns, they have characteristics of a verb. To avoid ambiguities GMAT never considers a gerund to be a parallel structure to a noun.

Some of the ways to convert a gerund into a pure noun is by adding an article (“a”,”an”, or “the”) before the gerund.

“Loosening” is a gerund, whereas “a loosening” is a pure noun
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 18 Dec 2010, 06:46
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Economist wrote:
Okay, let me give an example:
Lets go and smoke. => smoke = verb
Lets have a smoke.=> smoke = noun

If we talk about this statement, your next question would be why do we have "hedging" not "a hedging"? But, hedging is referred as a type of strategy ( which again makes it a noun ): "hedging and other investor strategies". So it does not require "a" :)


And also because "hedging" is actually a noun.
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Re: The economic forces which may affect the new public offering  [#permalink]

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New post 19 Nov 2013, 07:55
The economic forces which may affect the new public offering of stock include sudden downturns in the market, hedging and other investor strategies for preventing losses, loosening the interest rates in Washington, and fearing that the company may still be undercapitalized.
there are four facts which should be parallel with each other. They are:
1.Sudden downturns in the market
2.Hedging and other investment strategies for preventing loss (note that hedging is not a ing form of verb but a strategy hence used as noun here)
3.loosening the interest rates in Washington
4.fearing that the company may still be undercapitalized.

Error Analysis:
3rd and 4th point -Loosening and fearing are not noun, which is required for sentence to follow parallelism.
POE:
(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized - wrong for reason mentioned above
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized - wrong as loosening is still not a noun also being undercapitalized is wordy
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized - Wrong as 4th part is still not in parallel
(D) a loosening of the interest rates in Washington, and a fear of the still undercapitalized company - it corrects original mistake by making loosening and fear in parallel with other part of the sentence, but it also changes the intended meaning of the original sentence.(fear of the undercapitalized company or fear that company is still undercapitalized??)
(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized - Right- it corrects parallelism mistakes and also convey the intended meaning of original sentence.
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 29 May 2018, 06:49
The OA given is E. a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized, but I did not understand why? I was going with A. loosening the interest rates in Washington, and fearing that the company may still be undercapitalized as the answer.

Could someone explain please?

101mba101 wrote:
The economic forces which may affect the new public offering of stock include sudden downturns in the market, hedging and other investor strategies for preventing losses, loosening the interest rates in Washington, and fearing that the company may still be undercapitalized.


A. loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
B. loosening the interest rates in Washington, and a fear of the company still being undercapitalized
C. a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
D. a loosening of the interest rates in Washington, and a fear of the still undercapitalized company
E. a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 29 Oct 2018, 08:00
how the heck am I supposed to know if loosening is a verb or noun... I am so bad at SC.
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Re: The economic forces which may affect the new public offering of stock  [#permalink]

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New post 29 Oct 2018, 08:16
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For the least you should know that the article 'a' can be used with noun only. That 'a' makes it a noun.

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Re: The economic forces which may affect the new public offering of stock &nbs [#permalink] 29 Oct 2018, 08:16
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