"Pump and Dump" Is a Technique Used by Individuals, Such

question 40

Multiple Choice

"Pump and Dump" is a technique used by individuals, such as the teenage wheeler-dealer, where:

• A)the investor pumps up his financial worth, steals the money to invest, and quickly dumps the stock.
• B)the salesman pumps up the stock and then dumps his investment into the stocks.
• C)a corporate insider pumps up the value of company stock and then dumps bad loans into the business before the business is sold.
• D)the salesman pumps up his qualifications and secretly dumps the investors' stock.

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Definitions:

Ending Fixed Asset Value

The residual value of a fixed asset at the end of its useful life or after a specific period.

Depreciation

Reduction in the value of an asset over time due to use and wear.

Cash Flow From Assets

The total amount of cash generated by a company from its operating activities, investment activities, and financing activities.

Taxable Income

Taxable income refers to the amount of an individual's or business's income used to determine how much tax they owe to the government in a given tax year, after all deductions and exemptions.