Which of the Following Is the Correct Order of Corporate

question 81

Multiple Choice

Which of the following is the correct order of corporate issues based on risk and return? (Most risk-return to least risk-return)

• A) Common stock,subordinated debentures,secured debt,treasury bills.
• B) Preferred stock,common stock,subordinated debentures,secured debt.
• C) Common stock,long-term government bonds,secured debt,subordinated debt.
• D) Common stock,secured debt,subordinated debentures,preferred stock.

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Definitions:

Mortgage Owes

Refers to the outstanding balance or the amount still owed by a borrower on their mortgage loan.

Open Mortgage

A type of mortgage that can be paid off, in full or in part, at any time without penalty, offering flexibility in repayment.

Final Order of Foreclosure

A legal decision by a court to permanently transfer ownership of property from the borrower to the lender due to default on the mortgage.

Power of Sale

A legal clause found in mortgages or deeds of trust that gives the lender the right to sell the property without court supervision if the borrower defaults.