Getting Paid Monthly Is What Type of Reinforcement Schedule

question 44

Multiple Choice

Getting paid monthly is what type of reinforcement schedule?

• A) fixed interval
• B) fixed ratio
• C) variable interval
• D) variable ratio

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Definitions:

Green Shoe Provision

A clause in an underwriting agreement that allows underwriters to buy and sell additional shares than originally planned.

Protective Covenant

Part of the indenture limiting certain transactions that can be taken during the term of the loan, usually to protect the lender’s interest.

Preemptive Right Provision

A clause in a contract that gives existing shareholders the right to buy new shares before the company offers them to the public, in order to maintain their fractional ownership.

Private Placements

The sale of securities directly to a limited number of private investors rather than through a public offering in the open market.