Securities Are ________ for the Person Who Buys Them,but Are

question 76

Multiple Choice

Securities are ________ for the person who buys them,but are ________ for the individual or firm that issues them.

• A)assets;liabilities
• B)liabilities;assets
• C)negotiable;nonnegotiable
• D)nonnegotiable;negotiable

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Definitions:

Purchase Accounting Method

An accounting approach used in mergers and acquisitions, where the assets and liabilities of the acquired company are added to the acquirer's balance sheet at their current fair market values.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Tender Offer

A tender offer is a proposal made publicly by an investor or company to purchase some or all of shareholders' shares in a corporation at a specified price.

Consolidation

The process of combining multiple companies or financial statements, often to present a unified set of financials or to merge businesses.