If a Security Is Traded on the New York Stock

question 105

Multiple Choice

If a security is traded on the New York Stock Exchange and on a regional exchange, the security is said to be

• A) dual listed.
• B) multiple listed.
• C) traded in the second and third markets.
• D) geographically diversified.

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Definitions:

Compound Interest

Interest that is determined by taking into account not only the original principal of a deposit or loan but also all the interest that has been compounded in previous cycles.

Earnings Rate

The return on an investment or the amount of profit made compared to the amount of money invested.

Internal Rate of Return

An investment’s projected rate of return, calculated by finding the discount rate that sets the net present value of all cash flows (both positive and negative) to zero.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return, adjusting for the time value of money.