Which of the Following Statements Is Correct

question 16

Multiple Choice

Which of the following statements is correct?

• A)Michael Milken pioneered an active high-yield bond market in the late 1970s that provided much needed capital to entrepreneurs and financial innovators.
• B)Prior to Milken, the only junk bonds were those issued by once financially stable firms that had fallen on hard times.
• C)Milken showed investors that, historically, junk bonds rarely defaulted and offered a very high return to those willing to assume the risk of owning them.
• D)All of these statements are correct.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and usually voting rights in the company.

Stock Options

are financial derivatives that give the holder the right, but not the obligation, to buy or sell stocks at a predetermined price within a specific period.

Unethical Behavior

Actions or practices that violate moral or professional standards of conduct.

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability protection to its shareholders.