Exam_questions_and_answers_Linda

1.1.Explain briefly and in general terms what is the meaning of a security and how it facilitates direct lending and borrowing? A claim on the issuer’s future income or assets It enables corporations & governments to borrow to finance their activities 1.2.Explain briefly what is a common stock, what purpose it serves and how it affects business investment decisions Represents a share of ownership in a corporation Has a claim on the earnings & assets Important investment decisions: Pri...