The Funds That Are Kept by the Company Out of Profits

question 88

Multiple Choice

The funds that are kept by the company out of profits and after dividends are paid are called which of the following?

• A) share equity
• B) investor earnings
• C) retained earnings
• D) secondary earnings

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Definitions:

1934 Act

A federal statute that provides for the regulation of the securities industry, including the creation of the Securities and Exchange Commission.

Rule 10b-5

Rule 10b-5, under the United States Securities Exchange Act of 1934, is a regulation prohibiting fraudulent practices in securities trading, including misrepresentation and insider trading.

Insider Information

Confidential information about a company or its securities that has not been made public and that could provide a financial advantage in the market.

Plain English TERM SHEET

A document outlining the key terms and conditions of an investment, written in clear, straightforward language.