Problem on making investment decision


Problem: Select the term associated with making investment decisions that corresponds to each of the given descriptions. (Note: These are not necessarily complete definitions, but there is only one possible answer for each description.) Description Term Shares of ownership in the assets and earnings of a business corporation. Interest-bearing, negotiable certificates of long-term debt issued by a corporation that can be exchanged for common stock in the issuing company. An investment company that combines the funds of investors who have purchased shares of ownership in it and then reinvests that money in a diversified portfolio of stocks and issued by other corporations or governments. An investment in this can yield returns in the form of rents, capital gains, and certain tax benefits. An investment that has some characteristics of both a stock and a bond.

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Accounting Basics: Problem on making investment decision
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