Examlex

Solved

The Stock Price of a Gold-Mining fiRm Drops When It

question 397

Multiple Choice

The stock price of a gold-mining firm drops when it is discovered the firm's chairman has overstated minable gold reserves. This is an example of a (n) ______________ risk factor.


Definitions:

Realized Gains

Profits earned from the sale of an asset, which exceed the asset's purchase price, recognized in the company's financial statements.

Fair Value

Fair value is the estimated price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.

Bond Investments

Purchasing debt securities issued by corporations or governments, where the investor lends money in exchange for interest payments and the return of the bond's face value at maturity.

Related Questions