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Markets which deals with high liquid and short term debt securities are classified as money markets. The money market is the trade in short-term debt investments.

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An earning before interest, taxes, depreciation and amortization average multiple for publicly traded companies is classified as entity multiple. Enterprise multiple, also known as the EV multiple, is a ratio used to determine the value of a company. The enterprise multiple looks at a firm in the way that a potential acquirer would by considering the company's debt.

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In binomial approach of option pricing model, fourth step is to create riskless investment. An investment with a certain rate of return and no chance of default.

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An earning of business which is available for free distribution to all stockholders and creditors is classified as free cash flows. Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets.

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Rational traders immediately buy stock when price is too low.

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Proceeds of company shares of sold stock is recorded in common stock account. The common stock account is a general ledger account in which is recorded the par value of all common stock issued by a corporation.

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An increase in value of option leads to low present value of exercise cost only if it has interest rates are high. Because higher interest rates mean higher borrowing costs, people will eventually start spending less. The demand for goods and services will then drop, which will cause inflation to fall.