If John Executes a Buy Order to Take Place When

question 13

Multiple Choice

If John executes a buy order to take place when the stock price of ABC Ltd.falls to $10,it is a(n)

• A)on-stop order.
• B)limit buy order.
• C)buy stop order.
• D)sell stop order.

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Definitions:

Positive Net Present Value

Indicates that the present value of future cash flows from an investment exceeds the initial investment cost, suggesting profitability.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity.

Stock Repurchase

A company's buying back of its own shares from the marketplace, reducing the number of outstanding shares and often increasing shareholder value.

Excess Cash

Cash holdings that exceed the normal operational needs of a company, potentially available for investment or distribution to shareholders.