___ Are debt certificates that are purchased by an investor

There are two types of debt certificates: commercial paper and government bonds. Commercial paper is issued by companies that want to raise capital but don’t have access to the public markets. Government bonds are issued by governments to raise funds for specific purposes.

Out of the options of Stock , bond and mortgage

Government Bonds are debt certificates that are purchased by an investor.

Bond

Bonds are debt instruments whose interest payments are guaranteed by governments or corporations. Bonds are issued by governments, companies, and institutions to finance projects such as buildings, equipment, and research. Investors buy bonds in order to receive a steady stream of income over time.

Stock

A stock is a share of ownership in a company. A stock certificate represents shares of ownership in a company which entitles its holder to a certain amount of the corporation’s profits. Stocks are bought and sold publicly at financial markets around the world, using well-developed securities settlement systems based on standardized accounting practices.

Debt certificates are essentially loans secured by assets such as real estate or gold. They are also known as fixed income securities because they provide a steady stream of returns throughout the life of the loan. Debt certificates are often used as a way to finance large projects such as buying property, building factories, or even starting a company.

So for the question to

What are debt certificates that are purchased by an investor

Government Bonds

Other Accounting Questions

See also  The account format that displays debits credits balances and headings

Leave a Comment