For items (11-20) Write T if the statement is true, if otherwise change the underlined word/s to make the statement correct.
11. Astockis a share in the ownership of a company.
12. Astock marketisa place where stocks can be bought or sold
13. The stock yield ratio is a per share amount as stated on the company certificate. It is determined by the company and
remains stable over time
14. Acouponis a periodic interest payment that the bondholder receives during the time between purchase date and maturity date
15. A dividendis a share in the company's profit.
16. The amount payable on the maturity date in Par Value or Face Value (F) P=F, the bond is purchased at a discount.
17. The coupon rate is the rate per coupon payment period. 18. Astock marketisa place where stocks can be bought or sold.
19. The amount payable on the maturity date in Par Value or Face Value (F), If P> F, the bond is purchased at a par
20. Apar valueis a ratio of the annual dividend per share and the market value per share.
Answers & Comments
Answer:
11.T
12.T
13.F
14.T
15T
16.T
17F
18F
19T
20.F