Whichofthefollowing statements best describes financial instruments?
◦
Investors will exchange cash for a financial instrument even if they expect to receive an unacceptable rate of return.
◦
Debt instruments usually do not have specified payments and a specified maturity.
◦
Equity instruments typically have specified payments and a specified maturity.
◦
Shareholders are entitled to cash flows after bondholders, creditors, and other claimants have been satisfied.