BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

OFFICE MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A certificate of capital participation is referred to as ____
A
Certificate
B
Receipt
C
Shares
D
Issuer
Explanation: 

Detailed explanation-1: -A certificate of participation (COP) is a type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Certificates of participation are, therefore, secured by lease revenues.

Detailed explanation-2: -Participation certificates (PC) Used in the context of general equities. Investments representing an interest in a pool of funds or in other instruments, such as foreign securities, that allow participation in the rise or fall of a security or group of securities.

Detailed explanation-3: -Share. A profit participation certificate is a form of security which is widely used in Switzerland, Germany and Austria. Profit participation certificates entitle their holders to dividends based on the performance of the issuing company, just like shares.

Detailed explanation-4: -Certificates of Participation are also a new form of credit instrument whereby banks can raise funds from other banks and other central bank approved financial institutions to ease liquidity. In this case banks have the option to share their credit asset(s) with other banks by issuing participation certificates.

Detailed explanation-5: -A certificate of participation is a document that records or acknowledges the completion of a specific activity. As a result, every participant at an event receives a certificate documenting their participation. The hosting entity provides the certification.

There is 1 question to complete.