When a New Drug Is Approved for Prescription Use,it Is

question 17

Multiple Choice

When a new drug is approved for prescription use,it is likely that several years have passed since __________.

• A)the drug was first synthesized and testing begun
• B)the drug began Phase 1 clinical trials
• C)the drug began Phase 2 clinical trials
• D)the drug began Phase 3 clinical trials

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the market capitalization remains the same.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock, beyond the par value of the shares.

Cost Method

An accounting method used to value certain investments at their original purchase cost, less any impairments.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.