You Purchase a Share of Facebook Stock from a Friend

question 29

True/False

You purchase a share of Facebook stock from a friend who purchased the stock 1 year ago.Your purchase of the stock represents a transaction in the primary financial market.

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Definitions:

Investment Decision

The process of evaluating and selecting where to allocate financial resources to achieve anticipated financial returns or gains.

Straight-Line Depreciation

A method of calculating the depreciation of an asset whereby the original cost is reduced equally across each year of its estimated useful life.

Salvage Value

The predicted disposal value of an asset at the conclusion of its usable life.