One of the More Appealing Features of a Common Stock

question 128

Multiple Choice

One of the more appealing features of a common stock is that stock investments

• A)offer ownership with a limited liability.
• B)offer relatively high annual income.
• C)can always be sold for at least the purchase price.
• D)have a relatively high minimum investment.
• E)offer tax-exempt income.

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Definitions:

Unpaid Contributions

Amounts due to a fund or organization, such as a pension or insurance plan, that have not been paid by the deadline.

Long Service Leave

An employee benefit that grants extended paid leave for workers who have been with their employer for a long period.

Nominal Value

The face value of a bond or stock, which is the amount paid at maturity, not necessarily its current market value.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.