What financial instrument grants credit to a company?
Understand the Problem
The question is asking for a term that refers to financial instruments that provide credit to a company. The correct response is identified as bonds.
Answer
Bonds
The final answer is bonds.
Answer for screen readers
The final answer is bonds.
More Information
Bonds are a form of debt instrument where investors lend money to a company, which in turn pays interest and returns the principal at the maturity date.
Tips
A common mistake is confusing stocks with bonds. Stocks represent equity ownership, not a loan or credit.
Sources
- Debt-Based Financial Instruments - Corporate Finance Institute - corporatefinanceinstitute.com
- Financial Instruments Explained: Types and Asset Classes - Investopedia - investopedia.com
AI-generated content may contain errors. Please verify critical information
Thank you for voting!
