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The Portion of Net Income That the Company Has Kept

question 189

Multiple Choice

The portion of net income that the company has kept over a period of years and not used for dividends is called:


Definitions:

Exercise Price

The price at which the holder of an option can buy (call) or sell (put) the underlying asset or security.

May 40 Put

A put option contract with a strike price of $40, expiring in May, giving the holder the right to sell the underlying asset at this price.

May 40 Call

An options contract that gives the holder the right, but not the obligation, to buy a stock at a price of $40 per share before or on its expiration in May.

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