Question
What is known as dilution? a. The artificial difference between the net asset value (NAV) and the fair value of the securities. b. An investment
What is known as dilution?
a. | The artificial difference between the net asset value (NAV) and the fair value of the securities. | |
b. | An investment technique that involves short-term in-and-out trading of mutual fund shares. | |
c. | The harm caused by the transfer of wealth from long-term investors to market timers. | |
d. | The loss resulting from forward pricing requirements. |
Capitalizing costs that should be expensed:
a. | is a healthy practice if they written off shortly after the transaction takes place. | |
b. | has the effect of increasing net income by the same amount of the capitalized costs. | |
c. | is a practice mostly found in large, well-established companies. | |
d. | usually has no effect on net income. |
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