Material Information Is Information That

question 5

Multiple Choice

Material information is information that:

• A)if omitted in the valuation,would significantly alter the value of the firm.
• B)details only assets and liabilities of a corporate information disclosed due to regulations.
• C)the promoters are legally responsible for disclosing as part of the red-herring prospectus.
• D)the underwriters disclose while marketing the firm?s initial public offering.

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Definitions:

Broker Commission

A fee paid to a broker for executing a transaction or providing specialized services.

Acquisition Cost

The total cost associated with purchasing an asset, including the price and all other costs to prepare the asset for use.

Salvage Value

The anticipated amount an asset will fetch when sold at the conclusion of its useful lifespan.

Illuminate

To light up or brighten a space; in a metaphorical sense, it can also mean to clarify or make something clear and understandable.