Which of the Following Is Not a Financial Derivative

question 27

Multiple Choice

Which of the following is not a financial derivative?

• A) Stocks
• B) Futures
• C) Options
• D) Forward contracts

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them a stake in the company's performance and potential profits.

Annual Shareholder Meetings

A yearly gathering where company executives report to shareholders on the firm's performance and strategy.

Receive Interest

Earning income on an investment, such as a bond or savings account, based on the interest rate over time.

Limited Liability

A legal structure that limits the extent of financial liability for investors to the amount invested in a company.