Thinly Traded Securities Have a Greater Inherent Risk Related to Valuation

question 39

True/False

Thinly traded securities have a greater inherent risk related to valuation.

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Definitions:

Capital Lease

A lease agreement that grants a lessee the benefits and risks of ownership of the asset, typically recognized on the balance sheet.

Balance Sheet

A “snapshot” of an organization’s financial position at a given moment.