A Market Where Securities Are Are Bought from or Sold

question 1

Multiple Choice

A market where securities are are bought from or sold to a market maker is known as a

• A) board of exchange.
• B) exchange floor.
• C) dealer market.
• D) broker market.

Grasp the concept of risk premium and how to calculate it.

Learn to calculate the probability range of returns for a stock.

Understand the concept of the reward for bearing risk and how to calculate it.

Learn how to calculate dividend yield on a stock.

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Definitions:

Pure Competition

A business environment where many small companies sell identical products and there are no barriers to entering or leaving the market, resulting in perfect competition.

Pure Monopoly

A market framework where there is only one provider offering a distinctive product without any closely resembling alternatives.

Increasing Profits

A financial strategy or outcome where a business experiences a growth in net earnings over time.

Lowering Price

A strategic move where a seller reduces the price of goods or services to attract more customers or beat competitors.