The Suffix -Phasia Means "Porous

question 73

True/False

The suffix -phasia means "porous."

Recognize the concepts of diversification and professional management in bond investment.

Understand the tax implications of bond investments for corporations.

Identify the roles and security types evaluated by rating agencies such as Moody's and Standard & Poor's.

Recognize the methods and tools available for evaluating bond investments.

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Definitions:

Debentures Issued

Long-term securities issued by a company to raise capital, backed only by the general creditworthiness and reputation of the issuer.

Preference Shares

A type of share that typically grants its holders priority over ordinary shareholders in receiving dividends and upon liquidation of the company's assets.

Financial Liability

Obligations a company owes to another entity, which could be in the form of loans, bonds payable, or other types of debt.

Compound Financial Instrument

A financial instrument that has both a debt and equity component and may be convertible into shares of the issuing company.