Which of the Following Statements Is NOT True

question 94

Multiple Choice

Which of the following statements is NOT true?

• A) Odd lots consist of the purchase or sale of fewer than 100 shares of stock.
• B) The commission rates on odd lots are often less expensive on a per share basis than for round lots.
• C) Most trades on the NYSE are done via round lots.
• D) When stock prices begin to rise above the preferred trading range, the cost of a round lot may move out of the range of several small retail traders.

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Definitions:

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.

Profit Margin

A financial metric that measures the percentage of revenue remaining after deducting all expenses, indicating the efficiency and profitability of a company's operations.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing debt or equity financing.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.