Proceeds from Borrowing and Issuing the Firm's Own Equity Securities

question 32

True/False

Proceeds from borrowing and issuing the firm's own equity securities are examples of financing cash inflows.

---

Definitions:

Forfeited Shares

Stocks that are taken back by a company from investors because of the failure to meet certain conditions of the purchase agreement like payment completion.

Calls

In finance, calls often refer to call options, which are contracts giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.

Surplus

The amount by which revenues exceed expenditures in a budget, often referring to profit or the excess of assets over liabilities.

Listed

Refers to a company or security that is officially registered and available for trading on a public stock exchange.