Why Is Valuation of Most Stock Issuances Usually Considered to Be

question 107

Multiple Choice

Why is valuation of most stock issuances usually considered to be relatively straightforward?

• A)The number of transactions is small.
• B)The transactions are typically material.
• C)Most stock is issued for cash.
• D)There are no disclosure issues to worry about,since stock amounts are reported in the body of the balance sheet.

---

Definitions:

Meteorites

Solid pieces of debris from objects such as asteroids or comets that have made their way through the Earth's atmosphere and landed on the surface.

Continental Drift

The hypothesis, now a scientific theory, that the Earth's continents have moved over geological time relative to each other, appearing to have "drifted" across the ocean bed.

Glacial Evidence

Glacial evidence comprises physical features left on the landscape that indicate the past presence and movement of glaciers, such as striations, moraines, and glacial erratics.

Wegener's Hypothesis

The theory proposed by Alfred Wegener suggesting that continents drift across the Earth's surface through geological time, which later became known as continental drift.