The Measure of How Quickly an Item Can Be Converted

question 69

Multiple Choice

The measure of how quickly an item can be converted to cash is referred to as:

• A)leverage.
• B)solvency.
• C)profitability.
• D)liquidity.

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Definitions:

Underwriter Risk

The risk that an underwriter of securities, such as stocks or bonds, faces when guaranteeing the sale of securities to the public.

Rights Offering

A method for companies to raise capital by offering new shares to existing shareholders under specific terms and usually at a discount.

Share Price

The current price at which a particular share of stock can be bought or sold.

Oversubscription

A situation in which the demand for a new stock issuance or other securities exceeds the supply being offered.