In A(n)__________,the Employer Guarantees That the Participant Will Receive an Annual

question 38

Multiple Choice

In a(n) __________,the employer guarantees that the participant will receive an annual benefit for life following retirement,or the actuarial equivalent of such a benefit,based on a formula in the plan regardless of contributions made or the plan's investment performance.

• A) defined contribution pension plan
• B) 401(k)plan
• C) employee stock ownership plan
• D) defined benefit pension plan

---

Definitions:

Dutch Auction

An auction in which the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.

Winning Bidder

The individual or entity that offers the highest price in a bidding process, such as auctions or competitive tenders.

Seasoned Equity Offering (SEO)

A new equity issue of securities by a company that has previously issued securities to the public.

Underpriced

A term used when a stock or other security is selling for a price that is lower than its apparent or intrinsic value.