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You Watch a Demonstration Taking Place on Campus

question 94

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You watch a demonstration taking place on campus. You are excited and when you get home you tell your roommate Alberta about what you saw. Another roommate, Lucy, returns later and you overhear her excitedly telling Alberta about the same demonstration, but her description doesn't sound anything like what you saw. What most likely accounts for this difference?


Definitions:

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Cash

Money or any instrument that banks will accept for deposit and immediate credit to a company’s account, such as a check, money order, or bank draft.

Common Stock Account

An equity account on a company's balance sheet representing the amount of money that has been invested directly in the company by its shareholders in exchange for common stock.

$5 Par Value

A nominal or face value assigned to a share of stock, in this case, set at five dollars, used in certain financial calculations and legal paperwork.

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