Recovery of Capital (ROC)results In

question 8

Multiple Choice

Recovery of capital (ROC) results in:

• A)An increase in the dividend available to the investor
• B)An increase in the value of the stock
• C)A reduction in the cost basis of acquired stock
• D)A reduction in losses on the stock

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Definitions:

Gram

A unit of measure for mass that is equal to 0.001 kilograms.

Milliliters

A measurement of capacity in the metric system, equal to 0.001 liters.

Ounce

A unit of weight in the US customary and British imperial systems, equal to 1/16 of a pound or approximately 28.35 grams.

Milligram

A mass unit that is equivalent to 0.001 of a gram.