Corporations and Brokers Prefer to Have Stock Purchases Conducted in Round

question 250

True/False

Corporations and brokers prefer to have stock purchases conducted in round lots of 100 shares.

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Definitions:

Transfer Price

The price at which goods and services are sold between divisions within the same company.

General Rule

A basic or principal rule that provides guidance or policy in a given area or operation.

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials or direct labor.