Which of the Following Securities Would You Expect to Buy

question 10

Multiple Choice

Which of the following securities would you expect to buy on the primary market?

• A) A bond that has no maturity left.
• B) A bond with a very long maturity date.
• C) A newly issued share.
• D) A previously issued share.

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Net Income

The residual earnings of a company following the subtraction of all costs and taxes from its revenue.

Costing Method

An accounting approach used to value inventory and determine the cost of goods sold, which can vary, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.