It Is Impossible for an Investor to Insure Against the Risk

question 22

True/False

It is impossible for an investor to insure against the risk of bond default.

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Definitions:

Sub-subsidiary

A company controlled by a subsidiary of another company, creating a tiered structure of corporate ownership and governance.

Subsidiary Company

A company that is controlled by another company, usually referred to as the parent company, through ownership of more than half of its voting stock.

Parent Company

A corporation that owns controlling interest in one or more other companies, referred to as subsidiaries.

Total NCI

Refers to the Total Non-Controlling Interest in a company, representing the equity in a subsidiary not attributable directly or indirectly to the parent company.