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As Part of the Registration Statement,the Preliminary Prospectus Circulates to Investors

question 2

Multiple Choice

As part of the registration statement,the preliminary prospectus circulates to investors before the stock is offered.This preliminary prospectus is also called a(n) :

Definitions:

Markup Percentage

The percent added to the cost price of goods to cover overhead and profit.

Required Return

The minimum expected return an investor demands for an investment, considering the risk associated with it.

Absorption Costing

An accounting method that includes all of the costs associated with production, including variable costs and fixed overhead.

Selling Price

The amount of money charged for a product or service, or the sum the market will bear.