A
It is issued by the national government with maturity of less than a year.
TREASURY BILLS
A type of market which provides the investor with short term sources of capital
MONEY MARKETS
TRUE OR FALSE
Commercial paper has a maturity ranging from 90 days to 9 months
TRUE
A formal unconditional promise, made under seal, to pay a specified sum of money at a determinable future date, and to make periodic interest payment at a stated rate until the principal sum is paid
BONDS
Financial market in which longer-term debt and equity instruments are traded
CAPITAL MARKETS
Pertains to the bonds internal rate of return
YIELD TO MATURITY
TRUE OR FALSE
One of the bond trading processses wherein the underwriting bank purchases the bonds through competitive bidding is known as the negotiated scale trading
This type of equity security generally has limited voting rights as compared to the other equity shares.
PREFERRED SHARES
A type of bond that is unsecured and is backed only by the reputation of the issuing corporation
DEBENTURES
A type of equity shares that can be traded with or without par value
ORDINARY SHARES
A form of secured bonds wherein the real property of the issuer serves as the collateral
MORTGAGE BONDS
This mortgage bond has a senior claim over the other bonds when the same asset secures numerous bonds.
A. First Mortgage Bonds
B. Second Mortgage Bonds
C. Open-end Mortgage Bonds
D. Close-end Mortgage Bonds
A. FIRST MORTGAGE BONDS
TRUE OR FALSE
One of the rights a preferred shareholder have is the right to share in the residual assets in the event of liquidation
FALSE
A type of unsecured bond wherein interest will only be paid when the issuer recognized earnings.
A. DEBENTURE BONDS
B. INCOME BONDS
B. INCOME BONDS
A type of bonds issued that is consider to be the safest fixed income investments in the world.
TREASURY BONDS
A type of bond with the interest rate dependent on the market conditions
A. JUNK BONDS
B. FLOATING RATE OR VARIABLE BONDS
B. FLOATING RATE BONDS / VARIABLE RATE BONDS
A feature of the preferred shares wherein it entitles the shareholder to share in profit above the declared dividends
A. Cumulative Feature
B. Participating Feature
B. PARTICIPATING FEATURE
Ordinary shareholders are called the _________________ since they are the least priority in payment when the company liquidated
RESIDUAL OWNERS
A. Outstanding
B. Issued
C. Authorized
C. AUTHORIZED
TRUE OR FALSE:
Issued shares is equal to outstanding shares
FALSE, issued shares can be equal or greater than outstanding shares considering the existence of the treasury shares