Who is considered a debt investor?

Study for the DISS Fundamental Analyst Exam. Enhance your skills with multiple choice questions and detailed explanations. Prepare thoroughly and achieve success!

A debt investor is someone who provides funds to a borrower, such as a company, with the expectation of receiving those funds back over time, typically along with interest payments. This relationship is defined by the terms of a bond or loan agreement, where the borrower is obligated to repay the principal amount and interest as agreed.

In this context, option B clearly identifies the core function of a debt investor: the provision of funds with the expectation of repayment. This contrasts with the other choices, where option A refers to real estate investing, which is typically associated with asset ownership rather than debt investment. Option C pertains to equity investors, who gain ownership stakes in businesses, thus benefiting from their profits but assuming greater risk than debt investors. Option D involves charitable contributions, which do not involve an expectation of repayment, making it unrelated to debt investment. Therefore, option B is the most accurate representation of a debt investor's role.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy