An Express Contract

question 15

Multiple Choice

An express contract

• A)must be in writing.
• B)may be inferred by the conduct of the parties involved.
• C)has both parties setting forth their intentions.
• D)is not valid in many states.

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Definitions:

Transaction Costs

The expenses incurred when buying or selling securities, including broker fees and taxes.

Futures Markets

Competitive marketplaces where parties can trade standardized futures contracts; that is, legal agreements to buy or sell something at a predetermined price at a specified time in the future.

Leverage

The use of borrowed funds or financial instruments to increase the potential return of an investment, which can also magnify the potential for loss.