A Certificate of Ownership and Claim to Part of a Firm's

question 57

Multiple Choice

A certificate of ownership and claim to part of a firm's profits is called

• A) a stock.
• B) a bond.
• C) a certificate of deposit.
• D) depreciation.
• E) physical capital.

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Definitions:

Bond Prices

The amount of money that buyers are willing to pay for bonds, which inversely correlates with the direction of interest rates.

Par Value

A nominal value assigned to a security or stock as stated in the corporate charter, which bears no relation to market value.

Market Return

The total return on an investment, including dividends and capital gains, as measured over a specified period in the overall market.

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the bond's face value.