If a Report Is Not Supposed to Offer Recommendations,you

question 43

Multiple Choice

If a report is not supposed to offer recommendations,you:

• A)should omit the recommendations in the title of the report.
• B)may use a passive verb to conceal the recommendation.
• C)should "bury" the recommendation in the last of a paragraph of the report's ending.
• D)may still mention the recommendation in the report's title page.

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Definitions:

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits or losses.

Convertible Bond

A financial instrument that can be converted by the bondholder into a predetermined quantity of the issuer's company shares at certain intervals throughout the bond's life, generally at the bondholder's discretion.

Straight Bond Value

The value of a bond without any embedded options; it pays fixed interest and returns the principal at maturity.

Conversion Value

The value of a convertible security if it is currently converted into the number of shares that the security is worth according to its conversion terms.