Which of the Following Statements About the Over-The-Counter Market Is

question 288

Multiple Choice

Which of the following statements about the over-the-counter market is false?

• A) Mutual funds and other new issues are initially issued over the counter
• B) Security prices are determined through auction bidding
• C) Broker dealers must be resigned
• D) Securities are traded at many locations throughout the country

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Definitions:

Sound Argument

An argument that is both valid (correctly structured such that if the premises are true, the conclusion must be true) and has all true premises.

Valid

Logically sound, where the conclusion necessarily follows the premises without any logical fallacies.

Premises

Statements or propositions that are presupposed and provide support for a conclusion in an argument.

Inductive Argument

A form of reasoning where the conclusion is supported by the premises but is not guaranteed to be true.