Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are handled by members of the organization, while public markets are those in the black market, where anyone can make transactions. Statement 2. A common stock is not a derivative, but a futures contract to buy the stock is a derivative because the value of the futures contract is derived from the value of the stock. Statement 1 is true Statement 2 is true Both Statements are true. Both Statements are false..
Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are handled by members of the organization, while public markets are those in the black market, where anyone can make transactions. Statement 2. A common stock is not a derivative, but a futures contract to buy the stock is a derivative because the value of the futures contract is derived from the value of the stock. Statement 1 is true Statement 2 is true Both Statements are true. Both Statements are false..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are handled by members of the organization, while public markets are those in the black market, where anyone can make transactions.
Statement 2. A common stock is not a derivative, but a futures contract to buy the stock is a derivative because the value of the futures contract is derived from the value of the stock.
Statement 1 is true
Statement 2 is true
Both Statements are true.
Both Statements are false..
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