Since Each Share of Ordinary Share Represents Ownership in a Company

question 78

Multiple Choice

Since each share of ordinary share represents ownership in a company, ordinary shares are often referred to as

• A) illiquid investments.
• B) unit- cost securities.
• C) fixed- income securities.
• D) equity securities.

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Definitions:

Atomic Sentences

Simple statements in logic that contain no logical connectives or quantifiers, expressing a basic claim.

Truth Table

A mathematical table used in logic to determine the veracity of various propositions under all possible scenarios.

Hypothetical Syllogism (HS)

A form of deductive reasoning that connects two conditional statements to arrive at a conclusion, if P then Q; if Q then R, therefore if P then R.

Modus Ponens (MP)

A valid form of argument where if a conditional statement ("if p then q") is accepted, and the antecedent (p) is true, then the consequent (q) must also be true.