All of the following are true about debt securities except:
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 than the maturity value.
E)They reflect an owner relationship.

Question

Quizplus · Accepted Answer

Debt securities, such as bonds and notes, do not reflect an owner relationship, but rather a creditor relationship. The holder of a debt security is typically owed a fixed or variable rate of interest and a repayment of principal at maturity, but does not have ownership rights or voting power in the issuing company. Choices A, B, C, and D are all true about debt securities.

All of the Following Are True About Debt Securities Except