A Debenture Is an Option Issued by a Corporation That

question 73

True/False

A debenture is an option issued by a corporation that gives the holder the right to acquire common stock from the issuing firm at a specified price within a designated period of time.

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Definitions:

Debenture

A debt security issued by a corporation that may or may not have specific assets of the corporation pledged as security for payment.

Lien

With respect to goods, it is the right to retain the goods until payment is made.

Mortgagee

The lender or financial institution in a mortgage agreement, who holds the mortgage as a security for the loan provided to the borrower.

Construction Lien

A legal claim against a property by a contractor or subcontractor for unpaid work or materials.