If a Company Borrows Money Via Debt Financing, the People

question 186

True/False

If a company borrows money via debt financing, the people or institutions that loan the money get an ownership share in the company.

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Definitions:

Maturity

The date on which the principal amount of a financial instrument is scheduled to be repaid.

Daily Settlements

The process by which futures contracts are revalued at the end of each trading day based on the closing market prices to reflect gains and losses.

Sum

The total result of adding two or more numbers or quantities together.

Derivatives Exchanges

Specialized marketplaces where derivatives securities, such as futures and options, are traded.