An Interest or Share in Something Is Referred to as A(n)

question 21

Multiple Choice

An interest or share in something is referred to as a(n)

• A) option.
• B) ownership position.
• C) stake.
• D) bond.

---

Definitions:

Bond Premium

The surplus of a bond's market price over its nominal or face value.

Face Amount

The total amount of money that will be paid at maturity by a financial instrument such as a bond or life insurance policy.

Unamortized Premium

The portion of the premium paid over the par value of a bond that has not yet been expensed in the company's financial statements.

Carrying Amount

The book value of assets and liabilities on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.