When a Company Sells Stock at an Amount Greater Then

question 39

Multiple Choice

When a company sells stock at an amount greater then par value,the excess amount is referred to as:

• A)a discount.
• B)a premium.
• C)a bonus.
• D)Companies cannot sell stock for more than par value.

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Definitions:

Exchange Rate

The price at which one currency can be exchanged for another currency.

Units

Refers to a measure of quantity or amount in a specified dimension such as length, mass, time, etc., or in the context of economics and finance, the smallest portion of a product or financial instrument.

Percent Saving

The percentage of the original price saved as a result of a discount or offer.

U.S. Border

The geographical boundary separating the United States from neighboring countries.