To State That Net Equity Issues Have Been Negative Indicates

question 101

Multiple Choice

To state that net equity issues have been negative indicates that:

• A) more shares have been repurchased than newly issued.
• B) new shares have been sold at less than par value.
• C) issuing stock has been a negative NPV transaction.
• D)dividend payments have exceeded net income.

---

Definitions:

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Call Option

An economic agreement that provides the bearer the option, without the necessity, to purchase a share, bond, commodity, or different asset at an agreed-upon price during a determined timeframe.

Derivative Security

A financial security whose value is determined by or derived from an underlying asset or group of assets, such as stocks, bonds, commodities, or market indices.

Fixed Price

A contractually agreed-upon price for goods or services that is not subject to any changes in cost.