There Are Several Security Issues That Affect Consumers

question 7

Essay

There are several security issues that affect consumers.Choose two specific issues.Explain the nature of the issue, what consumers can do to protect themselves, and what business should be doing to protect consumers.

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that will be paid back at maturity.

Maturity Date

The date on which a financial instrument such as a bond or loan agreement is due to be repaid in full.

Sinking Fund Provision

A clause in a bond or other long-term debt instrument that requires the issuer to set aside funds regularly to repay the debt before it matures.

Bond Indenture

A legal contract specifying all the terms and conditions between a bond issuer and bondholder, including obligations, rights, and protections.