The Right to Purchase a Specified Number of Shares of a Company's

question 46

Multiple Choice

The right to purchase a specified number of shares of a company's stock for a specified price at a future date is called a:

• A) stock bid.
• B) stock option.
• C) stock grant.
• D) stock right.

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Definitions:

Settlement

The process of transferring ownership of securities from the seller to the buyer and the corresponding payment from the buyer to the seller.

Accrued Interest

Interest that has been incurred but not yet paid, often considered in bond pricing and transactions.

Financial Press

Media outlets that provide news, analysis, and commentary on financial and economic subjects, including markets and business trends.

Bond Price

The market value of a bond, which fluctuates based on interest rates, credit quality, and the bond's time to maturity.