Question

1. True or False (circle) - Trading securities are securities which pay interest and which have a fixed maturity date.

2. True or False (circle) -Debt Securities are securities that represent an ownership interest in the company and which do not have a fixed maturity date.

Answer 1

1) False

Explanation:

1) Trading securities can be Debt and equity securities which are  purchased and sold to earn short-term profits from changes in the market price.

2) As stated in above statement, it can be bought and sold any time in the market, so it does not have a fixed maturity date.

3) Profit are earned through changers in market price, it does not pay interest.

4) Therfore statement is false.

2) False:

Explanation

1) Debt securities , does not represent ownership, as it is money borrowed for fixed rate of interest

2) Securities such as Notes and bonds that pay interest and have a fixed maturity.

3) Therefore above statement is false.