Which of the Following Is a Difference Between Public Securities

question 2

Multiple Choice

Which of the following is a difference between public securities and private financial instruments?

• A)Public securities are high-risk investments,whereas private financial instruments are low-risk instruments.
• B)Public securities can be traded on secondary markets,whereas private financial instruments are not traded on secondary markets.
• C)Firms with public securities are not regularly audited,whereas firms with private financial instruments are annually audited.
• D)Public securities are partially regulated by government agencies,whereas private financial instruments are completely regulated by different government agencies.

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Definitions:

Gross Margin Ratio

A financial metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its production costs.