Examlex
Which one of the following statements best describes a concept?
Common Stock
Equity ownership in a corporation, with voting rights and potential for dividends, representing a claim on part of the company’s earnings and assets.
Conversion Ratio
The specified number of shares that can be exchanged for one unit of the convertible security.
Exercising Option
The act of implementing the right to buy or sell an underlying asset at a predetermined price before the option expires.
Option Contract
A financial derivative contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a specified time frame.
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