When All of the Authorized Shares Have the Same Rights

question 127

Multiple Choice

When all of the authorized shares have the same rights and characteristics,the stock is referred to as:

• A)Preferred shares under both IFRS and GAAP.
• B)Common shares under both IFRS and GAAP.
• C)Plain shares under IFRS and common shares under GAAP.
• D)Simple shares under IFRS and pure shares under GAAP.
• E)Share capital under IFRS and common shares under GAAP.

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Definitions:

Expense Ratio

The annual fee that all mutual funds and ETFs charge their shareholders, expressed as a percentage of the fund's average net assets.

NAV

Net Asset Value, the per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Front-end Load

A commission or sales charge applied at the time of the initial purchase of an investment, usually used in mutual funds.

Back-end Load

A fee paid by an investor when shares are sold, typically used in mutual funds, where the fee decreases over time the investment is held.