All of the Following Are Benefits of Organized Stock Exchanges

question 51

Multiple Choice

All of the following are benefits of organized stock exchanges EXCEPT

• A) increased stock price volatility.
• B) continuous markets.
• C) fair security prices.
• D) easier access to new capital for business expansion.

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Definitions:

Disposal of Equipment

The process of getting rid of fixed assets or equipment which is no longer useful or needed through sale, trade, or recycling.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Depreciation Expense

Depreciation Expense is the allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other decline in value.

Net Income

The ultimate earnings of a company once total revenues are reduced by operating expenses, taxes, and all other costs.