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Validity Refers to What a Selection Procedure Measures and How

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Validity refers to what a selection procedure measures and how well it measures it.


Definitions:

Cash Dividends

Distributions from a corporation to its owners, typically in the form of profit payouts.

Brokerage Fees

Charges levied by a broker for facilitating transactions between two parties, such as buying or selling stocks.

Available-For-Sale Security

A financial investment not classified as held-for-trading or held-to-maturity, which can be sold in the short term for cash.

Fair Value

An estimate of a security's worth on an open market, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

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