Sally Has Just Come Out of a Store Changing Room

question 67

Essay

Sally has just come out of a store changing room wearing a new dress. As she checks it in the mirror a store clerk flatters her,telling her that the dress looks amazing on her. How is Sally likely to interpret the salesperson's motives?

---

Definitions:

Par Value

The nominal value of a bond, stock, or other security, as stated by the issuer upon issuance.

Discount

A reduction applied to the usual cost of goods, services, or invoices, often to encourage prompt payment or increase sales.

Preferred Stock

A type of stock that grants holders priority dividends, often with fixed rates, and preferential treatment in the event of liquidation over common stockholders.

Par Value

The face value of a bond or stock as stated by the issuer, which bears no relation to its market value.