Which of the Following Statements Is True of a Seller

question 57

Multiple Choice

Which of the following statements is true of a seller?

• A) It refers to anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur.
• B) It refers to the individual or business organization offering a security for sale to the public.
• C) It refers to anyone who prepares the registration statement and prospectus for securities involved in a sale.
• D) It refers to a person who is in possession of an article and is responsible for returning the article safely to the owner once the contract is fulfilled.
• E) It refers to anyone who controls or is controlled by the issuer, such as a major stockholder of a corporation.

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Definitions:

Annual Coupon

refers to the fixed interest payment that a bond issuer agrees to pay to the bondholder once every year until the bond's maturity date.

Zero-Coupon Bond

A bond that is issued at a discount to its face value but pays no interest; the investor's return is the difference between the purchase price and the face value at maturity.

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the nominal value assigned to a share of stock for accounting purposes.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, incorporating both interest payments and the increase or decrease in the bond's value to its face value at maturity.