Asked by Maddie Lofton on May 27, 2024
Verified
Investors buy securities for the future cash flows that come from owning them.
Securities
Financial instruments that represent ownership (stocks), a creditor relationship (bonds), or rights to ownership (derivatives) that can be bought and sold.
Future Cash Flows
Projected cash receipts and payments over a certain period, considered in investment analysis to determine an asset's present value.
- Recognize the components and operations of financial markets and securities.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
True
Explanation :
This is because securities such as stocks, bonds, and mutual funds represent ownership in a company or a debt obligation, and as such, investors expect to receive dividends, interest, or capital gains from them in the future.
Learning Objectives
- Recognize the components and operations of financial markets and securities.