The following are correct descriptions about Financial Instruments used in FinancialMarkets, EXCEPT:OA Security is a financial instrument that represents a claim on the issue's futureincome or assets.OBonds and Stocks are Financial Securities.Bond is a debt security that promises to make Variable Payments periodically, inproportion to the value of the asset in the market.Stock (common stock) offer returns that are variable and based on the netprofitability of the entity issuing the stock.

A financial instrument is a phrase used by accountants to describe cash, equity investments, and any…

Answered: The following are correct descriptions…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 1.6CE

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