The Call Provision Set by a Company on Its Bonds

question 365

True/False

The call provision set by a company on its bonds benefits the investor.

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Definitions:

Disgorgement of Profits

A legal remedy requiring a party to surrender profits gained through wrongful conduct to prevent unjust enrichment.

Fraudulent Sale

A transaction in which deception is used to gain a dishonest advantage, typically involving the misrepresentation of the value or condition of an item or service.

Executive Branch

The branch of government responsible for implementing and enforcing the laws passed by the legislative body, typically headed by the president or prime minister.

SEC

The U.S. Securities and Exchange Commission, responsible for regulating the stock market and protecting investors by ensuring fairness and transparency.