Marissa Purchases $500 of Stock from a Corporation Without Having

question 3

Multiple Choice

Marissa purchases $500 of stock from a corporation without having to use an account executive or a brokerage firm.She is using a

• A) Buy-and-hold technique.
• B) Direct investment plan.
• C) Direct reinvestment plan.
• D) Dollar cost averaging technique.
• E) Margin technique.

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Definitions:

Net Income

Net income is the total earnings of a company after subtracting all expenses, taxes, and losses.

Operating Profit Test

A financial metric used to assess a company's profitability from its core operations, excluding effects of financing and taxes.

Operating Segment

A component of an enterprise that engages in business activities from which it may earn revenues and incur expenses.

Separate Disclosures

Financial reporting requirement for specific information to be provided separately in financial statements to enhance clarity and understanding.