Securities; meaning, types, shares, stocks, bonds, gilt-edged and debentures. - SS3 Commerce Past Questions and Answers - page 1
What do securities represent?
Ownership or debt in a company or government entity.
Personal loans provided by financial institutions.
Currency used for international trade.
What is the main difference between shares and bonds?
Shares represent ownership, while bonds represent debt.
Shares pay fixed interest, while bonds pay dividends.
Shares are issued by governments, while bonds are issued by companies.
What are gilt-edged securities?
Debt securities issued by governments.
Ownership shares in a company.
Low-risk personal loans.
What is the role of debentures?
To represent ownership in a company.
To pay fixed interest payments to investors.
To provide personal loans to individuals.
Why are securities bought and sold in financial markets?
To raise capital for companies and governments.
To exchange goods and services.
To determine the value of currencies.
How do shareholders benefit from owning shares in a company?
What is the key difference between gilt-edged securities and debentures?