When a Firm Has Not Sold Shares on the Public

question 40

Multiple Choice

When a firm has not sold shares on the public stock market, it is known as

• A) closely held.
• B) privately held.
• C) publicly traded.
• D) a small cap stock.

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Definitions:

Price-Earnings Ratio

A financial measurement for equities determined by dividing the share's market price by its earnings per share.

Market Price

The immediate price point at which assets or services can be exchanged in the market.

Common Stock

A type of stock representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Dividends

Payments made by a corporation to its shareholder members, usually out of profits or reserves.