The Process by Which People Translate Incoming Information into a Form

question 156

Multiple Choice

The process by which people translate incoming information into a form that fits concepts they already understand is called

• A) equilibration.
• B) adaptation.
• C) accommodation.
• D) assimilation.

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Definitions:

Conversion Ratio

The specific quantity of common shares an investor can receive for converting each unit of a convertible security, such as a convertible bond or preferred stock.

Par Value

The face value of a bond or stock, typically the amount that is paid back at maturity for bonds or a nominal dollar value assigned to shares of stock.

Coupon Bond

A type of bond that offers interest payments to the holder at specified intervals until the bond's maturity.

Accrued Interest

The interest that has accumulated on a bond or other fixed-income security since the last interest payment was made.