INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 39

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-Mutual funds must value their securities [monthly | daily].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Debentures Issued

Long-term securities issued by a company to raise capital, backed only by the general creditworthiness and reputation of the issuer.

Preference Shares

A type of share that typically grants its holders priority over ordinary shareholders in receiving dividends and upon liquidation of the company's assets.

Financial Liability

Obligations a company owes to another entity, which could be in the form of loans, bonds payable, or other types of debt.

Compound Financial Instrument

A financial instrument that has both a debt and equity component and may be convertible into shares of the issuing company.