One Basis Point Is Equal To

question 5

Multiple Choice

One basis point is equal to:

• A) .01%.
• B) .10%.
• C) 1.0%.
• D) 10%.
• E) 100%.

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Definitions:

Treasury Stock

Securities initially distributed and subsequently bought back by the issuer, which lowers the quantity of shares actively traded on the market.

Common Stock

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a residual claim on corporate earnings in the form of dividends.

Authorized

Pertains to the maximum number of shares a corporation is legally permitted to issue, as specified in its charter.

Stated Value

An assigned value to no-par value stock by the company for accounting purposes, often used to meet state regulations.