Which of the Following Measures How Quickly an Investor Has

question 6

Multiple Choice

Which of the following measures how quickly an investor has access to his/her invested funds, if they are needed?

• A) risk
• B) tax consequences
• C) yield
• D) liquidity

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Definitions:

Date of Declaration

The date on which a company's board of directors announces a dividend payment to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains unchanged.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing company.

Retained Earnings

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends.