A Capital Gain Is an Additional Payment the Company Makes

question 40

True/False

A capital gain is an additional payment the company makes to the holder of one of its securities over and above the normal dividend or interest payment.

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Definitions:

Profiling An Option

This term is not widely recognized in standard financial terminology. NO.

Call Option

An option contract that allows the holder to purchase a specific asset at a predetermined price before the contract expires.

Swap

A financial agreement between two parties to exchange sequences of cash flows for a set period of time according to specified terms.

Floating Rate

An interest rate that is allowed to move up and down with the rest of the market or along with an index.