James Green Just Bought a Security Which He Expects Will

question 85

Multiple Choice

James Green just bought a security which he expects will provide him with a quarterly cash payment,although that payment is not guaranteed.In fact,he expects the amount of the payment to vary over time.What type of payment is he expecting to receive?

• A)option premium
• B)interest
• C)capital gain
• D)dividend
• E)rebate

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Definitions:

Licensing

The granting of permission by the owner of a brand, patent, or trademark to another party, allowing them to make, use, or sell a product under certain conditions.

International Markets

Markets that span across countries and continents, allowing for the trading and selling of goods and services globally.

Research and Development Costs

Expenses related to the investigation and discovery of new knowledge, products, or processes, which can improve a company's future performance and competitiveness.

Direct Ownership

A situation in which an individual or entity holds direct title to assets, such as property or stocks, without any intermediaries.