A Financial Asset Is Considered a Security If

question 63

Multiple Choice

A financial asset is considered a security if

• A) its value increases after it is sold in a primary market.
• B) it guarantees to repay its owner a fixed amount of money at maturity.
• C) it represents financial ownership in a corporation.
• D) it can be sold in a secondary market.

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Definitions:

Service

Activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.

Red Wine

A type of wine made from dark-colored grape varieties and characterized by its red hue.

Heart Disease

A broad term for various types of heart conditions, including coronary artery disease and heart failure.

Supply Curve

a graphical representation showing the relationship between the price of a good and the quantity supplied.