Legal Capital

question 131

Multiple Choice

Legal capital

• A)cannot be distributed to shareholders.
• B)reflects the most recent market price.
• C)is voted on by the shareholders.
• D)is indicative of the worth of the share.

---

Definitions:

Selling Price

The amount of money for which a product or service is sold to customers.

Face Value

The original cost of a bond or the principal balance to be paid back at maturity, excluding interest.

Market Interest Rate

The prevailing rate at which interest is charged on loans and bonds in the broader financial market.

Bond Yield

The return an investor realizes on a bond, calculated by the coupon payments relative to the market price of the bond.