You want to invest in a company that guarantees your money's interest payments and returns at the maturity date as an investor. Which is the best option for this investment? a. bonds b. stocks c. stocks and bonds d. neither stocks nor bonds
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You want to invest in a company that guarantees your money's interest payments and returns at the maturity date as an investor. Which is the best option for this investment?
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- Tell whether the following statements describe the characteristics of stocks or bonds. e. Issues of a stake of ownership in a company. f. Investment that generally have higher reward. g. Debt that is made with an investors for cash exchange for interest. h. Investors can earn money if the security increases, but they can lose money if the security decreases. i. The seller agrees to pay interest on the loan at a fixed rate and schedule.How do stocks and bonds differ in terms of the future payments that they are expected to make? Which type of investment (stocks or bonds) is considered to be more risky? Given what you know, which investment (stocks or bonds) do you think commonly goes by the nickname “fixed income”?4) Primary Markets exist for securities such as ________ to be offered to potential investors for the first time. Capital Market is a market where borrowers and lenders of _______ funds can transact. Group of answer choices a) shares, long-term b) bonds and shares, short-term c) bonds, short-term d) bonds and shares, long-term
- Debt Securities - These securities are in the form of debt or borrowings which have to be repaid by the issuer to the holder of the securities. The issuers of debt securities have to pay interest in the form of coupons at a rate of interest. Debt securities are a means of diversification and provide a predictable income stream to the holders. You mention "coupons" in you debt instrument discussion. Can you tell us more about these coupons? How do they work, where do we find them? Are they registered?1. How can we determine if the problem or scenario involves or illustrates stocks or bonds? 2. What possible problems or questions may we encounter when we are dealing with stocks? How about when we are dealing with bonds? 3. What factors have a great effect on the return of your investments both on buying stocks or buying bonds?What are the differences between stocks and bonds in terms of predicted future payments? Which sort of investment is regarded to be riskier (stocks or bonds)? Given your knowledge, which investment (stocks or bonds) do you believe is often referred to as "fixed income"?
- Which one of the following is referred as Equity finance? а. a. Sale of money market instruments O b. Sale of bonds. О с O c. Purchase of T-Bills. O d. Issue of sharesWhich of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury billIf given the original value (par value) and market price (the price the bond sold for), how do youknow if the bond is being issued at a discount or a premium? 2. As an investor, would you want to buy a bond at a discount or premium? Explain the reasoningbehind your choice. 3. Explain how a company's Income Statement is affected by treasury stock transactions?
- What does the book value of debt and equity refer to? O A. The par values of common stock and the maturity values of debt B. What a willing buyer and a willing seller will exchange the asset for O C. The values at which they are traded in the financial markets D. The values at which debt and equity are carried on a balance sheet1. Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a substantial increase in value. Rank these same securities with regard to investors' legal claims for repayment on their investments. 2. Would a relatively high P/E ratio lead us to conclude that a stock4. How can we determine if the problem or scenario involves or illustrates stocks or bonds? 5. What possible problems or questions we may encounter when we are dealing with stocks? How about when we are dealing with bonds? 6. What factors have a great effect on the return of investment both on buying stocks or buying bonds?