Market Segmentation Is the Process of Dividing a Total Market

question 81

True/False

Market segmentation is the process of dividing a total market into several relatively homogeneous groups.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Convertible Bonds

Corporate bonds that have a provision that they may be converted to a designated number of shares or to a designated value of the corporation’s stock.

Face Value

The dollar amount written on a note; it is the same as the amount borrowed, or the principal. With regard to corporate and government bonds, the amount that will be paid to the holder when a bond is redeemed at maturity.

Common Stock

The usual type of stock issued by a corporation, often with different rights compared to preferred stock.