Long term investment options Flashcards
1
Q
What is a debenture?
A
A loan which is made to a company. An investor receives interest at a fixed rate on the the money loaned. A debenture is backed by a right to sell the property of the company if the loan is not repaid on time
2
Q
What is an unsecured note?
A
An unsecured note is a loan to a company which is not secured. but interest rates are higher
3
Q
What is a Unit Trust?
A
A unit trust raises money that is invested in assets. such as fixed interest bank deposits, land or shares of companies listen on ASE
4
Q
What is a term Deposit?
A
Money invested with a financial institution such as a bank for a fixed period of time and interest
