Internet Market Exchanges

question 102

Multiple Choice

Internet market exchanges:

• A) restrict those that can participate
• B) eliminate the need for credit and background checks
• C) bring together buyers and sellers in the same industry
• D) are approved by the Federal Trade Commission (FTC)

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Definitions:

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its lifespan, usually at the discretion of the bondholder.

Zero Coupon Bond

A bond that pays no interest during its life. A “zero” sells for the present value of the principal repayment. However, the IRS imputes interest during the bond’s life on which the bondholder must pay tax.

Tax Implications

The potential tax effects or consequences of business transactions, personal income, or investment decisions.

Call Provisions

Clauses in bond contracts that allow the issuer to repay the bond before its maturity date, often at a premium price.