A Board of Directors Is Typically Made Up of Both

question 39

Multiple Choice

A board of directors is typically made up of both inside and ________ directors.

• A) leading
• B) subordinate
• C) specialist
• D) outside
• E) impartial

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Definitions:

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all payments of interest and principal.

Semi-annually

Semi-annually refers to an event or action occurring twice a year, or every six months.