Selling Common Stock to Residents of Foreign Countries Is Illegal

question 51

True/False

Selling common stock to residents of foreign countries is illegal in most countries, although it minimizes risk for any multinational corporation.

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Definitions:

Miller-Orr Model

Describes a cash management strategy aiming to maintain an optimal cash balance through upper and lower cash limit controls.

Opportunity Rate

The return rate a company foregoes by investing in a certain project, often compared to the risk-free rate or another investment option.

Monthly Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business in a given month.