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Match each of the definitions that follow with the appropriate investment term.

a. debt securities
b. equity securities
c. investor
d. investee
e. cost method
f. trading securities
g. available-for-sale securities
h. held-to-maturity securities
i. equity method
j. business combiination
1. = debt and equity securities purchased and sold to earn short-term profits from the changes in the market price
2. =preferred and common stock that represent ownership in a company and do not have a fixed maturity date
3. =the method of reporting an investment that represents less than 20% of the voting stock of another company
4. =when using this, dividends are treated as a reduction of the investment
5. =notes and bonds that pay interest and have a fixed maturity
6. =debt investments that a company intends to keep until their maturity date
7. =securities not held for trading or to maturity or other strategic reasons
8. =the company investing in another companyĆ¢s sock
9. =what occurs when a company purchase 50% or more of another companyĆ¢s stock
10. =the company whose stock is purchased by another entity

1 Answer

1 vote

Answer:

F - QUESTION 1

B - 2

E - 3

I - 4

A - 5

H - 6

G - 7

C - 8

J - 9

D - 10

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