Which of the Following Is NOT a Policy of Stock

question 22

Multiple Choice

Which of the following is NOT a policy of stock exchanges?

• A) To ensure that all persons investing in securities listed on the exchange have equal access to information that may affect investment decisions
• B) To regulate the conduct of securities markets
• C) To enable companies to maximise profits
• D) To protect investors and retain their confidence

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Definitions:

Zero-Coupon Bonds

Bonds that do not pay periodic interest, instead being sold at a discount and maturing at face value, offering a profit at redemption.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all payments of principal and interest at expected times.

Zero-Coupon Bond

A Zero-Coupon Bond is a debt security that does not pay interest (coupon) during its life but is issued at a substantial discount to its face value, with the face value being repaid at maturity.

Forward Interest Rate

An interest rate agreed upon for a loan or investment in the future, often derived from the yield curve of current interest rates.