To Be Truly Marketable, a Security Must Have Three Basic

question 129

True/False

To be truly marketable, a security must have three basic characteristics: a ready market, to be risk-free, and to have safety of principal.

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Definitions:

Price Per Share

The market value of a single share of a company's stock, determined by the supply and demand for it in the stock market.

Post-Merger Firm

A company that results from the combination of two or more companies into one entity following a merger.

Cash Acquisition

A method of acquiring another company by purchasing its assets or stock with cash payments.

Synergy Value

The additional value created by the combination of two or more companies or assets, often resulting in cost savings, enhanced revenues, or improved market position.