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Questions and Answers
What financial instrument represents ownership in a corporation?
What financial instrument represents ownership in a corporation?
- ETF
- Mutual fund
- Stock (correct)
- Bond
Which type of bond has no specific collateral backing it?
Which type of bond has no specific collateral backing it?
- Callable bonds
- Unsecured/Debenture bonds (correct)
- Conver琀椀ble bonds
- Secured bonds
What is a characteristic of a sinking fund in the context of bonds?
What is a characteristic of a sinking fund in the context of bonds?
- Relieves the issuer from paying interest on the bonds
- Provides funds to repay the bond principal at maturity (correct)
- Increases the debt burden for the issuer
- Allows bondholders to convert their bonds into stocks
Which financial entity assists in the sale or issue of new securities?
Which financial entity assists in the sale or issue of new securities?
What is the advantage of issuing a bond with a call provision?
What is the advantage of issuing a bond with a call provision?
In the context of equity financing, what is true about preferred stock?
In the context of equity financing, what is true about preferred stock?
What does an investment banker typically do in the financial market?
What does an investment banker typically do in the financial market?
What financial market is characterized by temporary sources of funds and tax-deductible interest payments?
What financial market is characterized by temporary sources of funds and tax-deductible interest payments?
What is a characteristic of convertible bonds?
What is a characteristic of convertible bonds?
What is the primary advantage of holding an Index Fund?
What is the primary advantage of holding an Index Fund?
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