When a Company Issues a Long-Term Debt Instrument with No

question 52

Multiple Choice

When a company issues a long-term debt instrument with no security attached it is selling _____ to investors.

• A) shares
• B) debentures
• C) unsecured notes
• D) term loans

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Definitions:

Investing

The process of distributing funds with the aim of achieving returns or financial gain.

Form

A specific type of document or report required by regulatory agencies for various financial filings and disclosures.

CAPM

The Capital Asset Pricing Model, a theory used to determine the expected return on investment by correlating the risk and the non-diversifiable risk of the market.