Types Of Securities - Commerce Jamb Past Questions and Answers

Question 16 :

• JAMB 2006

A bond which attracts only interest but leaves the capital unpaid is referred to as?

A. A long-term loan
B. A develoment bond
C. A redeemable bond
D. An irredeemable bond

Question 17 :

• JAMB 2006

A public company has 2 000 000 ordinary shares of 50k each and offers 50% for subscription at N2 per share.
If the shares were fully subscribed, calculate the issued capital?

A. N4 000 000
B. N2 000 000
C. N1 000 000
D. 500 000

Question 18 :

• JAMB 2007

Which of the is a risk-free security?

A. Preference share
B. Ordinary share
C. Treasury bill
D. Debenture

Question 19 :

• JAMB 2007

A new company requiring a large amount of equity finance may source funds from the?

A. Capital market
B. Central bank
C. Money market
D. Commercial banks

Question 20 :

• JAMB 2008

A source of capital that has elements of debt and equity is a?

A. Debenture
B. Warrant
C. Loan
D. Share