Default Refers to the

question 69

Multiple Choice

Default refers to the

• A)Rate of interest to be paid on a bond.
• B)Amount to be repaid when the bond is due.
• C)Failure to make interest or principal payments on a bond.

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Definitions:

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares and increases the share price proportionately.

Shares Outstanding

The cumulative amount of shares of a company presently held by all shareholders, encompassing large quantities owned by institutional investors and private shares held by company insiders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may not reflect its market value.

Stock Split

A corporate action to increase the number of shares outstanding by issuing more shares to current shareholders, often to make the stock more affordable to investors.