Which of the Following Is Not an Example of Political

question 2

Multiple Choice

Which of the following is not an example of political risk?

• A) Unanticipated changes in environmental regulations.
• B) Adverse movements in tax rules.
• C) Change in government.
• D) Nationalization of certain industries.
• E) None of the above

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired but has not retired, which can be resold or used for other corporate purposes.

Paid-in Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, over and above the par value of the shares.

Par Value

The face value of a bond or stock as stated in the corporate charter, which is the minimum amount the security can be sold for upon its initial offering.

Treasury Stock

Stocks that the company originally issued and then bought back, decreasing the total number of shares available for trading on the public market.