Possible Disadvantages of Private Stock Exchanges to Investors Include

question 11

Multiple Choice

Possible disadvantages of private stock exchanges to investors include:

• A) only large institutional investors may purchase shares in privately listed stocks.
• B) required disclosures may be less than those required when a firm goes public.
• C) trading volume is limited.
• D) B and C

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Definitions:

Additional Information

This term refers to extra or supplementary data provided beyond what was originally given or required.

Stochastic Probability

Involves randomness and uncertainty, it is the probability approach used to model and predict outcomes in situations where exact outcomes are unpredictable.

Transitional Probability

Calculated as the proportion of employees, or the number of employees who have historically resided in a given employment state divided by the total number of employees in the job. The transitional probability of termination for a job that has 10 employees and historically has seen 2 leave every year is 2/10, or 20 percent.

Markov Model

A mathematical model that accounts for transitions from one state to another in a system, where the probability of each state depends only on the current state and not on the history of states.