Recovery of Capital (ROC)results In

question 8

Multiple Choice

Recovery of capital (ROC) results in:

• A)An increase in the dividend available to the investor
• B)An increase in the value of the stock
• C)A reduction in the cost basis of acquired stock
• D)A reduction in losses on the stock

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Definitions:

Irrevocable

Something that cannot be changed, reversed, or undone, typically referring to certain contracts, trusts, or agreements.

Coupled With An Interest

A right or benefit that cannot be taken away because it is legally attached to another property or contractual right.

Agency Agreement

A legal contract creating a fiduciary relationship wherein the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements.

Writing

A method of recording language through the inscription or recording of signs and symbols.