The Corporate and Auditing Accountability,Responsibility and Transparency Act Requires SEC

question 67

True/False

The Corporate and Auditing Accountability,Responsibility and Transparency Act requires SEC reporting banks and bank holding companies to have a code of ethics.

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Definitions:

Zero-Coupon

Bonds or debt securities that are issued at a discount and do not pay periodic interest payments, instead offering a lump sum at maturity.

U.S. GAAP

United States Generally Accepted Accounting Principles, which are a set of rules and guidelines that companies follow when preparing financial statements in the U.S.

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the debt holder.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, usually expressed as an annual percentage of the principal.