Jeff Goldblum Has Just Purchased a Security Which Has No

question 142

Multiple Choice

Jeff Goldblum has just purchased a security which has no maturity date and no promised dividend payments.He can recoup his investment by either selling the security to another individual.What type of security did Jeff purchase?

• A)Stock option
• B)Corporate bond
• C)Government bond
• D)Dividend
• E)Common stock

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Definitions:

Book Value

The net value of a company's assets found on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs that increase with production volume.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus its depreciation.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor.