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Before Installing Software on Your Computer, It Is Important to Check

question 21

Multiple Choice

Before installing software on your computer, it is important to check its _____.

Analyze the effect of price changes on firm's risk profile and value.
Explain the concept of a risk profile and how it is influenced by market variables.
Detail the process and purpose of financial engineering in managing risk.
Recognize how businesses use financial instruments to hedge against price fluctuations in commodities.

Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares, though the overall value of one’s investment remains the same.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares of common stock.

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