Question

Which of the following pairs correctly matches a capital market instrument with ONE of its defining characteristics? I.   Equity Share — Carries residual claim on company assets after all liabilities are settled; dividends are discretionary. II.  Non-Convertible Debenture (NC

  • D — Debt instrument with fixed periodic interest; no voting rights; ranks above equity in liquidation. III. Preference Share — Carries fixed dividend priority over equity; but in liquidation, ranks below secured creditors and debenture holders. IV.  Commercial Paper — Long-term debt instrument issued by corporates directly to investors, bypassing bank intermediation.
A I and II only
B II, III and IV only
C I, II and III only
D I and IV only
E All four pairs are correctly matched
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