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A Sum of Money to Be Received in the Future

question 215

True/False

A sum of money to be received in the future is worth more than a sum of money today.


Definitions:

Subscription Price

The set price at which investors can buy shares of a stock or fund before they are offered to the public.

Market Price

This is the current price at which an asset or service can be bought or sold.

Privileged Subscription

An offer to existing shareholders to purchase additional shares in a company before the new shares are offered to the public.

Holder-Of-Record Date

The specific cutoff date established by a corporation by which one must be on the company's books as a shareholder to receive a dividend or other distribution.

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