___________ Stock Refers to Inventory That Is Held for Several

question 15

Multiple Choice

___________ stock refers to inventory that is held for several reasons,to include seasonal demand,projected price increases,and potential shortages of product.

• A)Base
• B)Safety
• C)Pipeline
• D)Speculative

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Definitions:

Convertible Bonds

Convertible bonds are a type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, usually at the discretion of the bondholder.

Credit Ratings

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Nonconvertible Bonds

Bonds that cannot be converted into the issuing company's stock and must be repaid in cash at maturity.

Warrants

Derivative securities that provide the right, but not the obligation, to buy shares of a company at a specified price before the warrant expires.