The Two Basic Sources of Stockholders' Equity Are

question 6

Multiple Choice

The two basic sources of stockholders' equity are:

• A)common stock and bonds.
• B)common stock and preferred stock.
• C)paid-in capital and retained earnings.
• D)loans from banks and gifts from donors.

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Definitions:

Home Currency

The currency in which a company primarily operates or the currency of the country where the company is headquartered.

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the contract's inception.

Settlement Date

The date on which a trade (purchase or sale of securities) is finalized, and the buyer must make payment while the seller delivers the securities.

Zero Sum Game

A situation in finance or economics where each participant's gain or loss is exactly balanced by the losses or gains of the other participants.