'If Equivalent Investment Opportunities Trade Simultaneously in Different Competitive Markets

question 65

Multiple Choice

'If equivalent investment opportunities trade simultaneously in different competitive markets, then they must trade for the same price in both markets.' What do we call the above statement?

• A)the Net Present Value rule
• B)the Valuation Principle
• C)the Law of One Price
• D)the time value of money

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Definitions:

Capital

Financial assets or resources owned by an individual or organization, used for investment or production.

Corporate Bylaws

Detailed rules adopted by a corporation governing its operations, including the rights and responsibilities of shareholders and directors.

Corporation By Estoppel

A legal doctrine that prevents a party from denying the corporate existence of a company when it has treated it as a corporation.

De Facto Corporation

A business treated as a legally incorporated company for all purposes except against the state in a direct proceeding, despite not completing the incorporation process properly.