Bonds Issued by a Local Entity,denominated in the Local Currency,traded

question 28

Multiple Choice

Bonds issued by a local entity,denominated in the local currency,traded in a local market,but purchased by foreigners are called:

• A)domestic bonds.
• B)Yankee bonds.
• C)Eurobonds.
• D)foreign bonds.

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Definitions:

Hedge Funds

Hedge funds are investment funds that employ various strategies to earn active returns for their investors, often engaging in leveraged, long, short, and derivative positions.

Private Equity Funds

Investment funds that gather capital from wealthy individuals or institutions to invest in buying and reorganizing private companies.

Separation Theorem

States that a firm’s investment decisions should be separate from the investment preferences of its investors.

Stock Ownership

Holding a share or shares of stock in a company, which represents a claim on part of the company's assets and earnings.