The Best Method for Valuing a Business Is to Use

question 73

True/False

The best method for valuing a business is to use established rules of thumb.

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Definitions:

Futures Positions

Futures positions are commitments to buy or sell a specified amount of a commodity, currency, or financial instrument at a specified price on a set future date.

Marking To Market

Marking to market is an accounting practice where assets and liabilities are adjusted to their current market values rather than their book values.

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Variation Margin Check

A financial safeguard measure in futures trading that involves calculating and settling the gains or losses on open contracts to ensure enough capital exists to cover potential losses.