Bonds That Are Backed Only by the Reputation of the Issuing

question 120

Multiple Choice

Bonds that are backed only by the reputation of the issuing corporation are known as

• A) mortgage bonds.
• B) registered bonds.
• C) debenture bonds.
• D) bond indentures.
• E) serial bonds.

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Definitions:

Par Value

A nominal value assigned to a share of stock in the corporation's charter, serving as the minimum price at which shares can be issued.

Common Stock

A type of equity security that represents ownership interest in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Treasury Stock

Repurchased shares by a company, treasury stock is treated as an asset on the balance sheet and can affect the company's shareholders' equity and earnings per share.

Paid-In Capital

Funds received from investors in exchange for shares of a company's stock, reflecting the equity capital contributed by shareholders.