Investors Should Understand That When Purchasing Stock,the Principle of __________

question 192

Multiple Choice

Investors should understand that when purchasing stock,the principle of __________ is in effect.It behooves investors to do research on the company,so they will make a wise purchase.

• A) modus operandi
• B) E Pluribus Unum
• C) de facto marketing
• D) cest la vie
• E) caveat emptor

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Definitions:

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest over previous quarters, increasing the total amount at a quarterly rate.

Ordinary Perpetuity

A series of equal cash flows that occur at the end of each period forever.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.

Compounded Quarterly

When an investment's interest is compounded quarterly, the interest is calculated and added to the principal four times a year.