A Financial Asset Is Considered a Security If

question 252

Multiple Choice

A financial asset is considered a security if

• A)the owner of the security receives dividends and realizes a capital gain when the asset is sold.
• B)it can be sold in a secondary market.
• C)its value increases after it is sold in a primary market.
• D)its value is secure; that is,the owner will not suffer a financial loss when the asset is sold.

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Definitions:

NATO

The North Atlantic Treaty Organization, a military alliance formed in 1949 by countries in North America and Europe to provide collective defense against aggression.

Soviet Aggression

Refers to the actions taken by the Soviet Union to expand its influence and territory during the Cold War, often seen as threats to non-communist countries.

National Security State

A concept referring to a government where a nation's resources and efforts are significantly directed toward maintaining and defending national security.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, lasting from the end of World War II until the dissolution of the Soviet Union in 1991, characterized by threats, propaganda, and other measures short of open warfare.