Corporate Debt Securities Are the Most Common Type of Security

question 60

True/False

Corporate debt securities are the most common type of security sold privately.

---

Definitions:

Check Clearing

The process of transferring funds from the bank on which a check is drawn to the bank where it was deposited.

Transaction Motive

The need to hold cash for the purpose of conducting day-to-day business transactions.

Disbursement Activities

The process involving the payment of money from a fund or account, typically referring to the cash flow outgoing from a business or individual for expenses, investments, or other financial purposes.

Collection Activities

Actions taken by businesses or agencies to collect debts owed by customers or clients.