Which of the Following Is an Advantage of Organized Stock

question 46

Multiple Choice

Which of the following is an advantage of organized stock exchanges?

• A) increased stock price volatility
• B) screening companies to ensure only low risk stocks are sold
• C) providing a continuous market
• D) Only profitable companies may issue new securities on an organized exchange.

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Definitions:

Sales Volume

The total number of units or products sold within a specific period.

Fixed Expense

Overheads that stay the same, no matter how much is produced or sold, encompassing charges such as property rent, staff paychecks, and insurance coverage costs.

Break-Even

Break-even refers to the point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Variable Expense

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.