Which of the following is true about debt securities?

Question

Quizplus · Accepted Answer

Debt securities are a form of asset-based financing, not preferred stocks. Option A is therefore incorrect. Option B is correct as companies that are growing faster than they can make money often prefer to use debt securities as a means of financing. Option C is incorrect as larger companies are more likely to issue publicly traded debt securities. Option D is also incorrect as financial institutions, like insurance companies, typically prefer to make long-term loans.

Which of the Following Is True About Debt Securities