An Attribute of an Equity Instrument Is That

question 40

Multiple Choice

An attribute of an equity instrument is that:

• A) the holder is entitled to a fixed-rate return.
• B) the holder is not entitled to a fixed-rate return.
• C) it always confers voting rights upon the holder.
• D) it is always issued at par value.

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Definitions:

Economic Harm

Refers to financial loss or damage suffered by a person or entity, often as a result of wrongful actions of another.

Implied-in-fact Condition

A legal term for a provision that, although not expressly stated, is presumed to be a part of an agreement based on the actions or circumstances of the parties.

Transaction

The act of conducting business or completing an exchange of goods, services, or funds between two or more parties.

Express Condition

An express condition is a specific, clearly stated requirement within a contract that must be fulfilled for the obligations of the contract to be performed.