Investing in Assets Such as Collectable Barbie Dolls or Beanie

question 253

True/False

Investing in assets such as collectable Barbie Dolls or Beanie Babies are both example of speculating.

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Definitions:

Contract Rate

The agreed-upon rate specified in a contract for services to be performed or for goods to be supplied.

Premium

The amount paid for an insurance policy or an amount paid over the face value of bonds.

Debt-To-Equity Ratio

A financial benchmark that shows the ratio between debt and shareholders' equity in asset financing.

Prepaying Bonds

The action of repaying the principal of a bond before its maturity date, often as a way to manage debt or save on interest costs.