Chapter 6, Problem 9AA

To determine

To choose: The term that best completes the given sentence.

Explanation of Solution

In private and public markets, securities are tradable and fungible financial instruments which are used to collect money. There are mainly three kinds of securities: equity, which gives investors ownership or rights; debt, mainly loans repaid with periodic payments; and combinations, which incorporate equity and debt components.

Securities laws are legislation that gives new powers to the securities market regulator to actively prosecute fraudulent in investment schemes.

So, it helps in preventing those schemes that tries to take an advantage of investor.

Thus, the suitable term for the given statement is “d- schemes”.