Which Statement Concerning Debentures Is Incorrect

question 5

Multiple Choice

Which statement 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 division of debenture borrowings into $100 or $50 units allows many small investors to participate in the issue.
• D) The market value of debentures is always the same as their face value.