Financial Assets and Debt vs. Equity Quiz

Bond = Entitles the owner to the principle and interest specified Equity/Stock = Entitles the owner to dividends from the issuing company Debt = A liability for the company and a financial asset for the investor Equity = A share of ownership of the company and a financial asset for the owner

Debt = When a company has borrowed money Equity = A share of ownership of the company Financial Instruments = Pieces of paper that are a claim on the issuing company Securities = Another term used to refer to financial assets

Liability for the company and financial asset for the investor holding it = Debt Piece of paper entitling owner to dividends from issuing company = Equity/Stock Claim on the company issuing it, entitling owner to principle and interest = Bond Another term for financial assets issued by companies = Securities

<p>Bond = Entitles owner to interest payments Equity/Stock = Represents ownership in a company Debt = Represents borrowed money for a company Financial Assets = Claims on companies issuing them</p> Signup and view all the answers

<p>Equity/Stock = Provides ownership stake in a company Liability for company, financial asset for holder = Debt Claim on issuing company, entitles to principle and interest = Bond Share of ownership, financial asset for owner = Equity</p> Signup and view all the answers

<p>Principle and interest specified on the bond</p> Signup and view all the answers

<p>Equity</p> Signup and view all the answers

<p>Equity entitles the owner to dividends, debt does not</p> Signup and view all the answers

<p>Securities</p> Signup and view all the answers

<p>A liability</p> Signup and view all the answers