The Type of Financial Security Having Payoffs Which Are Connected

question 4

Multiple Choice

The type of financial security having payoffs which are connected to some securities Issued some time back is classified as

• A)linked security
• B)previous security
• C)payoff security
• D)derivative security

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Definitions:

Capital Stock

Represents the original investment in a company by its owners or shareholders, indicated through the issuance of shares.

Treasury Stock

Shares that were once a part of the outstanding shares but were later repurchased by the company and held in its own treasury.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Market Price

The current price at which an asset or service can be bought or sold in a public marketplace.