When You Have Equity in a Company,it Means You

question 69

Multiple Choice

When you have equity in a company,it means you:

• A)own part of a company and share in its profits.
• B)have diversified the company's risk.
• C)have diversified your risk by investing with a company.
• D)None of these is true.

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predefined call price.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Redemption

The process of paying off or buying back something, such as redeeming a bond at maturity or redeeming shares of stock.

Bonds Issued

This term refers to the process where an entity, such as a corporation or government, issues debt securities to raise funds from investors.