Which of the Following Is a Characteristic of an Organized

question 107

Multiple Choice

Which of the following is a characteristic of an organized securities exchange?

• A) They facilitate trading unlisted securities.
• B) Municipal bonds are primarily traded in organized exchanges.
• C) Pink sheets are commonly used in these markets.
• D) The NASDAQ is an example of an organized exchange.
• E) Trading in securities is carried out in a physical location.

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Definitions:

External Financing Needed

The amount of money a company must raise from external sources to finance its business activities or growth, beyond what it can generate internally.

Dividend Payout

The portion of a company's earnings distributed to shareholders as dividends.

External Financing Needed

The amount of funding a company needs to support its operations and growth activities, beyond what can be generated internally.

Fixed Assets

Long-term tangible assets that are used in the operations of a business, such as buildings and machinery.