The Process of Creating a Secondary Market for Securities or Contracts

question 33

True/False

The process of creating a secondary market for securities or contracts is termed brokerage.

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate until its maturity.

Bond

A fixed-income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Straight-Line Method

A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.