Which of the Following Statements Concerning Debentures Is Incorrect

question 57

Multiple Choice

Which of the following statements concerning debentures is incorrect?

• A) A trustee, such as a bank or an insurance company, must be appointed to protect the rights of the debenture holders.
• B) An issue of debentures to the public must be accompanied by a prospectus.
• C) The market value of debentures is always the same as their face value.
• D) The division of debenture borrowings into $100 or $50 units allows many small investors to participate in the issue.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a fear of future events.

Fear of Failure

An emotional state characterized by the dread of not meeting a desired standard or outcome, potentially leading to avoidance behaviors.

Established Dependency

A condition in which an individual relies on a substance or activity to function normally, having developed a physical or psychological need.

Higher Levels of Learning

Advanced stages of acquiring knowledge and skills, involving critical thinking, problem-solving, and the ability to apply learned concepts in new situations.