A Negative Cash Conversion Cycle (CCC) Means the Average Payment

question 263

True/False

A negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operating cycle (OC).

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Definitions:

Program Trade

A set of stock transactions that involves the buying or selling of a large number of stocks simultaneously, often executed by computers to achieve specific investment objectives.

Coordinated Purchase

The act of buying securities or assets in a synchronized manner, often used to achieve a common financial goal or exert market influence.

Portfolio of Stocks

A collection of stocks held by an individual or an institution.

Seasoned Equity Offering

The process by which a publicly-traded company issues additional shares of stock to raise capital, typically after the initial public offering.