Stocks That Are Not Listed as Trading on One of the National

question 38

True/False

Stocks that are not listed as trading on one of the national or international stock exchanges can be traded on the OTC, Over-The-Counter exchange.

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Definitions:

Underallocates Resources

A situation where resources are not distributed efficiently, leading to potential waste and underproduction.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers at various prices.

Normal Profits

The minimum profit necessary for a company to remain competitive in the market, often equated to the opportunity cost of capital.

Allocative Efficiency

A state of the economy where resources are allocated in a way that maximizes the overall benefit to society.