Long-term Debt Securities and Preferred Stocks

Investors will always have their current money income balanced with their consumption desires.

When current income exceeds consumption desires, people tend to save the excess.

One way to save money is by investing it under a mattress or burying it in the backyard.

Investment is what investors do with their savings to make them increase over time.

When current income is less than consumption desires, people tend to save the difference.

Saving involves giving up immediate possession of savings for future consumption.

Marketability reflects the feasibility of converting an asset into cash quickly without affecting its price significantly.

The holding period for physical assets is typically shorter than the holding period for financial assets.

Investors acquiring physical assets usually plan to hold them for a short time period.

Information about financial assets is generally more abundant and costly to obtain compared to information about physical assets.

The impact of disclosed factors that influence the value of securities cannot be included in the analysis done by investors.

There is a limited variety of financial investment vehicles available even when analyzing only financial investments.

Long-term debt securities always have a maturity longer than 5 years.

Preferred stocks are the most common type of long-term debt securities.

Long-term debt securities are always considered 'safe' assets from an investor's perspective.

The major representatives of long-term debt securities are bonds.

Long-term debt securities are primarily traded in the money markets.

Global demand for long-term debt securities has decreased in recent years.

Exchanges are not involved in the supervision of trading to ensure fairness and efficiency.

The OTC market requires membership for brokers and dealers to negotiate sales of securities.

Market makers on exchanges can only buy and sell for others' accounts.

Exchanges do not regulate the admission of companies to be listed on the exchange.

Prompt and complete information about trades and prices in the market does not impact investors' willingness to trade.

The OTC market is a formal exchange with strict listing requirements.

Investors should not consider the level of risk when trying to earn higher income on their investments.

Investment policy does not need to include the tax status of the investor.

The identification of potential categories for investment portfolio is not based on investment objectives.

Technical analysis and fundamental analysis are the two most frequently used forms of investment vehicle analysis.

Investment vehicles that appear to be mispriced are not the focus of analysis and evaluation in investment management.

The assessment of risk is irrelevant when identifying potential categories of financial assets for inclusion in an investment portfolio.