Threats Are

question 12

Multiple Choice

Threats are

• A) internal and favorable.
• B) internal and unfavorable.
• C) external and favorable.
• D) external and unfavorable.

Understand the impact of electronic trading systems on market liquidity and trading.

Comprehend the implications of corporate actions like seasoned equity offerings on shareholder value.

Calculate and understand the costs associated with buying and selling stocks, including commission structures.

Grasp the ethical and legal standards governing professional conduct within the investment industry.

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Definitions:

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total output generated.

Economies of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread over more units of production.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories of the free market and the "invisible hand" guiding economies.

Diseconomies of Scale

Diseconomies of scale occur when a firm's costs per unit increase as it produces more units, due to inefficiencies.