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Match the Following Terms to Their Definitions

Question 3

Multiple Choice

Match the following terms to their definitions.
-__ Stock options


A) Gives holders the right but not the obligation to purchase shares of stock.
B) Gives holders the right to buy a share of stock at a stated price at an exercise price above current market levels.
C) Payments made to owners from corporate profits.
D) Debt or stock that can be changed into shares of common stock.
E) Gives holders the right to buy a share of stock at a stated price.

Correct Answer:

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