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Long-Term Investments Include Debt and Equity Securities That the Investor

question 34

True/False

Long-term investments include debt and equity securities that the investor expects to hold longer than one year or debt or equity securities that are not readily marketable.

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Definitions:

Common Stock

Common stock is a form of corporate equity ownership, a type of security that represents ownership in a corporation, giving holders voting rights and a share of the company’s profits.

Accrued Interest

Interest that has been earned but not yet received or recorded as of a particular date.

Bond Purchase

The acquisition of debt securities issued by corporations or governments, representing a loan made by the investor to the issuer.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

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