A Share of Common Stock Is Not a Derivative,but an Option

question 13

True/False

A share of common stock is not a derivative,but an option to buy the stock is a derivative because the value of the option is derived from the value of the stock.

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Net Sales

The revenue from goods or services sold by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Depreciation

This refers to the accounting process of allocating the cost of tangible assets over their useful lives, representing how much of an asset's value has been used up over time.

Office Equipment

Tangible items that are used in an office setting for operational purposes, such as computers, desks, and printers.