Which of the Following Statements Is Incorrect

question 26

Multiple Choice

Which of the following statements is incorrect?

• A)A stock is a certificate representing partial ownership in a corporation.
• B)Like debt securities, common stock is issued by firms to obtain funds.
• C)Stocks are issued by corporations to raise short-term funds.
• D)The secondary stock market enables investors to sell stocks that they had previously purchased.

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Definitions:

Capital Stock

Refers to the total amount of physical assets owned by a company that are used in producing goods or services.

Technology

Application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, and processes.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.

Production Possibility Frontier

A graphical illustration showing the maximum attainable combinations of two products that can be produced with available resources and technology, highlighting the trade-offs and opportunity costs.