Which of the Following Is False

question 60

Multiple Choice

Which of the following is false?

• A) The Treasury bond information published under the column heading "Yield" is based on the ask price of the bond.
• B) The Treasury bond information published under the column heading "Yield" is based on the assumption that the bond is held to maturity.
• C) The Treasury bond information published under the column heading "Bid" indicates the price a buyer will pay if he buys the bond.
• D) The Treasury bond information published under the column heading "Bid" is the price a buyer will receive if she sells the bond.

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Definitions:

Seasoned New Issue

A seasoned new issue refers to securities offered for sale by a company after the initial public offering, meaning the company already has securities that have been trading in the secondary market.

New Issue

The term for securities that are offered to the public for the first time through an initial public offering (IPO) or a bond issuance.

Prospectus

A formal legal document that is required by and filed with securities regulatory bodies that provides details about an investment offering to the public.

Venture Capital

Financing provided by investors to startup companies and small businesses with long-term growth potential in exchange for an equity stake.