It Is Easy for Individuals to Trade in the Corporate

question 31

Multiple Choice

It is easy for individuals to trade in the corporate bond market because

• A) the corporate bond market is considered to be very transparent.
• B) prices in the corporate bond market tend to be more stable.
• C) centralised reporting of deals between buyers and sellers take place.
• D) None of the above statements are true.

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Definitions:

Investment Income

Income received from the assets invested in, such as dividends, interest, or rental income.

Common Stock

Shares of ownership in a corporation that grant holders voting rights and a share of the company’s profits through dividends.

Long-Term Investment

Investments a company intends to hold for more than one year, typically including stocks, bonds, or real estate.

Investment Income

Investment income refers to the revenue generated from holding financial assets, including dividends, interest, and capital gains.