Which of the Following Is Not a True Statement Regarding

question 1

Multiple Choice

Which of the following is not a true statement regarding short-term debt investments?

• A) The securities usually pay interest.
• B) Investments are frequently government or corporate bonds.
• C) This type of investment must be currently traded in the securities market.
• D) Debt investments are recorded at the price paid less brokerage fees.

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Definitions:

Stock Split

Issue by a corporation of a given number of shares in exchange for shares currently held by stockholders. A split increases the number of shares outstanding. A reverse split decreases the number outstanding.

Divisor

A number by which another number is to be divided.

Dow Jones Industrial Average

A stock market index that measures the stock performance of 30 large, publicly-owned companies trading on stock exchanges in the United States.

Stocks Traded

Refers to the buying and selling of stock shares on financial markets.