Which One of the Following Terms Best Describes the Information

question 84

Multiple Choice

Which one of the following terms best describes the information you know about a company that will have a significant effect on the price of the company's stock once that information is released?

• A)material public information
• B)public information
• C)abnormal information
• D)private, non-material information
• E)material nonpublic information

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the minimum legal capital per share.

Dividend

A portion of a company's earnings distributed to shareholders, representing a share of the corporate profits.

Noncumulative Preferred Stock

A type of preferred stock where missed dividend payments are not accumulated. Investors are not entitled to claim missed dividends in the future.

Par Common Stock

The face value of common stock as stated in the corporate charter; often a nominal amount that has no relation to its market price.