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Match the Term with the Appropriate Phrase

question 18

Multiple Choice

Match the term with the appropriate phrase. You may use each answer once, more than once or not at all.
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Definitions:

Bonds

Bonds are fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share of the company's profits through dividends.

Preferred Shares

Preferred shares are a class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically entitling shareholders to fixed dividends ahead of common stockholders.

Cost of Equity

The anticipated reward that a corporation offers to its stockholders in exchange for the risk they take by investing their capital.

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