The Ease with Which a Security Can Be Sold and Converted

question 13

Multiple Choice

The ease with which a security can be sold and converted into cash is called:

• A) convertibility.
• B) liquidity.
• C) marketability.
• D) none of the above.

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Definitions:

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the amount bid by the second-highest bidder.

Willingness To Pay

The maximum amount an individual is ready to spend to acquire a good or service.

Expected Revenue

The forecasted amount of money that a business anticipates receiving over a certain period, based on projected sales volume and unit price.

Probability

A gauge for the chances of an event taking place, measured by numbers from 0 to 1.