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Liability on investment contracts refers to the obligations that an issuer has to fulfill under the terms of the contract, typically involving the return of principal or payment of interest to investors. These liabilities can arise from various types of investment vehicles, such as bonds, stocks, or mutual funds. They represent a company's commitment to its investors and are recorded on the balance sheet as liabilities, influencing the firm's financial health and risk profile. Understanding these liabilities is crucial for both issuers and investors in assessing the potential risks and returns associated with the investment.

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1mo ago

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