Bonds Are Categorized as ________ Securities Because the Company Is

question 37

Short Answer

Bonds are categorized as ________ securities because the company is indebted to the people who loan the company money through the purchase of bonds.

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Definitions:

Debt Securities

Financial instruments representing money borrowed that must be repaid, such as bonds, bills, or notes.

Model Business Corporation Act

A model set of laws prepared by legal experts to guide states in the development of their corporate statutes.

Shares

Units of ownership in a corporation or financial asset that represent an equal proportion of its capital.

Benefit

An advantage, profit, or gain received or enjoyed by an individual or entity, often as a result of a contract, employment, or other agreement.