When a Share of Stock Is Sold on the New

question 36

Multiple Choice

When a share of stock is sold on the New York Stock Exchange,it is traded

• A)In a prime financial market
• B)In a primary financial market
• C)For a promise to pay a fixed return
• D)To another stock exchange
• E)In a secondary financial market

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Definitions:

Par Value

Par value is the nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument, often used in the legal capital of a corporation.

Net Income

The amount of earnings left over after all expenses, including taxes and costs of goods sold, have been deducted from total revenue.

Stockholders' Equity Accounts

These accounts represent the owners' equity in a corporation, including common stock, retained earnings, and additional paid-in capital.

Net Income

The net income a corporation earns once all costs, taxes, and expenses are deducted from the total revenue.