What Type of Corporation Issues Stock That Is Held by Only

question 13

Multiple Choice

What type of corporation issues stock that is held by only a few people and not available to the public?

• A) Limited liability
• B) Subchapter S
• C) Public
• D) Closely held
• E) Professional

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Definitions:

Long Stock

Holding a stock position with the expectation that it will increase in value over time.

Net Payoff

The actual gain or loss experienced after executing a financial transaction, taking into account all costs involved.

Covered Call Strategy

An options strategy wherein an investor holds a long position in an asset and sells call options on that same asset to generate income from the option premiums.

Price Stability

A situation in which prices in the economy do not change much over time, reducing uncertainty for consumers and producers, and is often a goal of central banks.