All of the Following Are True About Debt Securities Except

question 58

Multiple Choice

All of the following are true about debt securities except:

• A)They can be short-term investments.
• B)They can be long-term investments.
• C)They can have a cost higher than the maturity value.
• D)They can have a cost lower than the maturity value.
• E)They reflect an owner relationship.

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Definitions:

High Cash Dividends

Refers to companies that payout a large portion of their earnings to shareholders in the form of dividends, usually signifying stable income.

Losing Positions

Investments that have decreased in value from the original purchase price, leading to potential financial losses for the investor.

Active Investments

Investment strategies that involve frequent transactions and monitoring by investors or fund managers with the aim to outperform market indexes.

Forecasting Errors

Discrepancies between predicted values and actual values that occur when projecting future data points or trends.