All of the following are true about debt securities except:
A) They can have a cost higher than the maturity value.
B) They can be short-term investments.
C) They can be long-term investments.
D) They can have a cost lower than the maturity value.
E) They reflect an owner relationship.

Question

Quizplus · Accepted Answer

Debt securities do not reflect an owner relationship as they represent a loan to the issuer and the holder of the security is a creditor, not an owner. Choices A, B, C, and D are all true statements about debt securities.

All of the Following Are True About Debt Securities Except