All financial securities share the characteristic that they represent a claim to future
A) interest income.
B) ownership.
C) cash flows.
D) dividend payments.

Question

Quizplus · Accepted Answer

Financial securities represent a claim to future cash flows, which may come in the form of interest or dividend payments, depending on the type of security. Ownership may also be implied, such as with stocks, but it is not a defining characteristic of all financial securities.

All Financial Securities Share the Characteristic That They Represent a Claim