All of the following are true about debt securities expect? A)They can be short-

Question

All of the following are true about debt securities expect?
A)They can be short-term investments B)They can be long-term investments C)They can have a cost higher than the maturity value D)They can have a cost lower then the maturity vale E)They reflect an owner relationship All of the following are true about debt securities expect?
A)They can be short-term investments B)They can be long-term investments C)They can have a cost higher than the maturity value D)They can have a cost lower then the maturity vale E)They reflect an owner relationship All of the following are true about debt securities expect?
A)They can be short-term investments B)They can be long-term investments C)They can have a cost higher than the maturity value D)They can have a cost lower then the maturity vale E)They reflect an owner relationship
A)They can be short-term investments B)They can be long-term investments C)They can have a cost higher than the maturity value D)They can have a cost lower then the maturity vale E)They reflect an owner relationship

Explanation / Answer

Answer : Option (E) They reflect an Owner relationship

Debt securities cannot reflect an owner relationship in a company. The Debt securities holders earn only interest on debt securities, but they cannot involve in decision making of company. Decision making rights in a company will be with the only for Equity share holders.

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