Exam_questions_and_answers_Linda
University of South Africa
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Exam_questions_and_answers_Linda
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---41oktober 20212021/2022A+
- 1.1.Explain briefly and in general terms what is the meaning of a security and how it facilitates 
direct lending and borrowing? 
A claim on the issuer’s future income or assets 
It enables corporations & governments to borrow to finance their activities 
1.2.Explain briefly what is a common stock, what purpose it serves and how it affects business 
investment decisions 
Represents a share of ownership in a corporation 
Has a claim on the earnings & assets 
Important investment decisions: 
Pri...
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