A Long-Term Technique Used by Investors Who Purchase an Equal

question 105

Multiple Choice

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called a

• A)dollar cost averaging.
• B)dividend reinvestment plan.
• C)buy and hold technique.
• D)regulated transaction.
• E)secured transaction.

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Definitions:

Equity in Subsidiary Earnings

The portion of income attributable to the parent company from its investment in subsidiaries, after intercompany transactions have been eliminated.

Consolidated Financial Statements

Financial statements that integrate the accounting information of a parent company and its subsidiaries, presenting it as one single entity.

Amortization

The method of incrementally expensing the original cost of an intangible asset over the period it is expected to be used.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profit.