Partial Ownership of a Firm That Is Considered to Be

question 101

Multiple Choice

Partial ownership of a firm that is considered to be the strongest and financially sound is done through what method?

• A) Buying of mutual funds
• B) Buying of blue-chip stocks
• C) Dividend reinvestment
• D) Funding of aggressive growth opportunities
• E) Buying of load funds

---

Definitions:

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Investment

The action or process of investing money for profit or material result.

Coupon Rate

A bond's annual interest yield, represented as a percentage of its principal amount.

Market Rate

The market rate refers to the prevailing interest rate available in the marketplace for transactions of a similar nature.