The Greater the Marketability of a Security

question 34

Multiple Choice

The greater the marketability of a security:

• A)the lower is the yield of the security.
• B)the lower is the price of the security.
• C)the more difficult it is to sell the security.
• D)the higher the probability the face value at maturity will be repaid fully.

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Definitions:

Property, Plant, and Equipment

Long-term tangible assets used in the operating activities of a business, such as buildings, machinery, and equipment.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Competitive Floor

The minimum price level that a product or service can be sold at within a competitive market, ensuring the seller remains competitive while covering costs.

Return on Assets

A financial ratio that shows the percentage of profit a company earns in relation to its overall resources.