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.

Question

Quizplus · Accepted Answer

The market value of debentures is not always the same as their face value. It can be affected by various factors such as interest rates, creditworthiness of the issuer, and market demand.

Which Statement Concerning Debentures Is Incorrect