A Firm Whose Only Asset Is Controlling Blocks of Shares

question 6

Multiple Choice

A firm whose only asset is controlling blocks of shares in other companies is called

• A)a conglomerate.
• B)a holding company.
• C)a pyramid.
• D)a dual-class company.

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Definitions:

Current Yield

The annual return of a bond, expressed as a percentage of its current market price.

6 ¾% Bond

A debt security issued with an interest rate of six and three-quarters percent, denoting the annual return to investors.

Current Yield

A financial ratio that measures the annual income (interest or dividends) from an investment as a percentage of the current price of the security.

10 ½% Bond

A bond that pays an annual interest rate of 10.5% to its holder.