Which of the Following Is Not a Component in the Definition

question 60

Multiple Choice

Which of the following is not a component in the definition of a security?

• A) An investment.
• B) An expectation of profit.
• C) Tangible collateral to secure the instrument.
• D) Efforts of a third party to create expected profit.

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Definitions:

Internal Reports

Reports generated within an organization for the purpose of decision making by management, not for public dissemination.

Actual Impact

The real effect or consequence that an event, decision, or action has had.

Management Accountants

Professionals who specialize in providing financial data and analysis to managers within organizations, aiding in decision-making processes.

Financial Data

Information relating to the financial operations of a company, including income, expenses, and investment performance.