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Match Each of the Following Terms with Their Descriptions Below

Question 1

Matching

Match each of the following terms with their descriptions below by inserting the correct letter

Premises:

Responses:

Ownership of more than 50 percent of another company's voting stock

Marketable securities

Debt and equity investments that may or may not be held short- or long-term

Held-to-maturity securities

Debt investments that will be kept for the long run

Significant influence

Ownership of less than 20 percent of another company's voting stock

Insider trading

Illegally using unreleased company knowledge for personal gain

Available-for-sale securities

Ownership of 20 to 50 percent of another company's voting stock

Control

Debt and equity investments that will be sold shortly after purchase

Trading securities

Another term for short-term investments

Noninfluential and noncontrolling

Premises:

Ownership of more than 50 percent of another company's voting stock

Debt and equity investments that may or may not be held short- or long-term

Debt investments that will be kept for the long run

Ownership of less than 20 percent of another company's voting stock

Illegally using unreleased company knowledge for personal gain

Ownership of 20 to 50 percent of another company's voting stock

Debt and equity investments that will be sold shortly after purchase

Another term for short-term investments

Responses:

Marketable securities

Held-to-maturity securities

Significant influence

Insider trading

Available-for-sale securities

Control

Trading securities

Noninfluential and noncontrolling

Correct Answer:

Premises:

Responses:

Ownership of more than 50 percent of another company's voting stock

Control

Debt investments that will be kept for the long run

Held-to-maturity securities

Debt and equity investments that may or may not be held short- or long-term

Available-for-sale securities

Illegally using unreleased company knowledge for personal gain

Insider trading

Ownership of less than 20 percent of another company's voting stock

Noninfluential and noncontrolling

Debt and equity investments that will be sold shortly after purchase

Trading securities

Ownership of 20 to 50 percent of another company's voting stock

Significant influence

Another term for short-term investments

Marketable securities