Factors Common to the Bond Rating Agencies' Risk Assessment Are

question 24

True/False

Factors common to the bond rating agencies' risk assessment are the economy and a government's debts.

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Definitions:

Information Content Effect

Refers to the impact that news or information released by a company may have on its stock price, indicating the market's reaction to new data.

Dividend Payout

The portion of a company's earnings that is paid out to shareholders in the form of dividends.

Bankruptcy Announcement

The official notice given by a company indicating that it is unable to meet its debt obligations and is seeking protection under bankruptcy laws.

Liquidating Dividend

This is a type of dividend paid by a company when it is in the process of shutting down or liquidating its operations, using the assets to pay shareholders.