High-Risk, High-Interest Bonds Are Called

question 392

Multiple Choice

High-risk, high-interest bonds are called

• A) convertible bonds.
• B) preferred bonds.
• C) discount bonds.
• D) junk bonds.

---

Definitions:

Acquisition of Additional Shares

The purchase of more shares in a company, either to increase an existing stake or as a strategic move in corporate acquisitions.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Consolidated Statement of Cash Flows

A financial statement that shows the cash inflows and outflows of a parent company and its subsidiaries, revealing how cash is generated and used over a period.

Financing Activity

Transactions involving changes in equity and long-term liabilities on the company's balance sheet, such as issuing shares, taking out loans, or paying dividends.