A(n) _____________ Contract Is a Legally Binding Agreement Between Two

question 168

Multiple Choice

A(n) _____________ contract is a legally binding agreement between two parties calling for the purchase/sale of an asset in the future at an agreed-upon price today.

• A) Forward.
• B) Spot.
• C) Swap.
• D) Option.
• E) Floating.

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Definitions:

Shares Outstanding

The total number of shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Equity-Financed

A method of funding a company’s operations by issuing shares of stock to investors rather than borrowing money.

All-Stock Deal

A type of transaction where payment for a purchase is made entirely through the exchange of shares rather than cash.

Incremental Value

The additional worth or benefit gained from a specific action or investment, compared to the situation without it.