Which of the Following Is NOT True of Over-The-Counter Markets

question 70

Multiple Choice

Which of the following is NOT true of over-the-counter markets?

• A)Prices are set by competitive bidding by a large number of traders.
• B)Trading does not take place in one physical location.
• C)Traders are willing to buy and sell stocks and bonds at a posted price.
• D)Traders are linked by computer.

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Definitions:

WACC

Weighted Average Cost of Capital is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Payback Method

Payback Method is a capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover the initial investment cost.

Investments

Assets or items acquired with the intention of generating income or appreciation over time, including stocks, bonds, real estate, or other vehicles.

Liquidity

The simplicity of turning an asset into cash without impacting its market value.