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A Major Difference Between New Shares Sold by a Corporation

Question 19

Multiple Choice

A major difference between new shares sold by a corporation and shares sold under a call option is that:


A) there is no profit or loss under the shares sold under the call.
B) there is no risk to the investor with the call.
C) there is no increase in the shares outstanding with the call.
D) there is no commission to the investor with the call.

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