PREVFinLit1 - IG (80p Protected Preview)

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Debt vs. Equity Securities

Place the financial instrument related term or feature in the correct circle: Debt, equity, or both. tradable represents value note alternative to taxing government-issued corporate-issued municipal financial instrument bill shares basically an “IOU” special district dividend rated default sovereign debt paid at discretion of board of directors maturity date Treasuries stock preferred trades indefinitely common interest junk represents ownership negotiable raises capital PRODUCT PREVIEW SECURITIES shares preferred tradable represents value interest Treasuries government-issued municipal note IOU dividend

represents ownership

negotiable

DEBT

EQUITY

default

corporate-issued

common

alternative to taxing special district

financial instrument

paid at discretion of board of directors

raises capital

sovereign debt

trades indefinitely

rated

junk

bill

stock

maturity date

271 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY

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