The Amount in Excess of Par Value That a Company

question 34

Multiple Choice

The amount in excess of par value that a company must pay when it repurchases a security is known as the _____. 

• A)call premium
• B)preemptive price
• C)cumulative dividend
• D)participating dividend
• E)growth stock

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Definitions:

Aggregate Expenditures

are the total amount of spending on goods and services in an economy at a given level of income during a specified period.

Recession

A phase of short-term economic downturn characterized by decreased trading and industrial output, generally recognized by a drop in Gross Domestic Product across two consecutive quarters.

National Debt

The aggregate financial obligations incurred by a government of a country through borrowing.

Tax Revenue

The income gained by the government through taxation, which is then used to fund public services and governmental functions.