Which of the Following Is a Characteristic of Secondary Markets

question 41

Multiple Choice

Which of the following is a characteristic of secondary markets for common stock?

• A)only low-priced shares are traded in these markets.
• B)only high-risk shares are traded in these markets.
• C)secondary markets are where corporations borrow funds.
• D)secondary-market trades do not provide funds for corporations whose stock is traded.

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Definitions:

Transferred Out

In accounting, it refers to the cost of goods or inventory that has been moved from one production process or department to another in the course of manufacturing.

Weighted-Average Method

A method for computing the cost of goods sold and the remaining inventory value that uses the mean cost of all available units.

Process Costing System

An accounting system used for homogenous products that are mass-produced, assigning costs to units of product based on the process they go through.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressing the work done in terms of fully completed goods.