Which of the Following Is Correct

question 52

Multiple Choice

Which of the following is correct?

• A)The maturity of a bond refers to the amount to be paid back.
• B)The principal of the bond refers to the person selling the bond.
• C)A bond buyer cannot sell a bond before it matures.
• D)None of the above is correct.

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Definitions:

Institutional Investors

Organizations such as banks, insurance companies, and pension funds that make substantial investments on the capital markets.

Major Exchanges

The leading stock exchanges worldwide, such as the New York Stock Exchange and the Nasdaq, where securities are bought and sold.

Price Setting

The process by which a company determines the selling price of its products or services.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.