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stocks are like investments ina company. Say for instance, you have stocks in a company (lets say mcdonalds for example). If the revenue was going great that year, then your stocks would be worth more that you bought them for. If they aren't your stocks may go down in value.. as for bonds.. I'm not quite sure.
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Stocks and bonds are issued by firms to raise capital for their investments and other operations. Bonds are used to obtain debt capital, and the capital that is raised by issuing stocks is called equity. The stocks issued are bought by institutional and household investors. So, now they are equity holders in the company. So, they get dividends from the company, and also get capital gain (when the stock price increases). Stocks attract investors because they are highly liquid (can be easily sold/bought when required )
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Is preferred stock considered to be more like common stock or bonds?
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
What is stock exchange and what is stocks and bonds?
A stock exchange is a place where stocks are traded. Stocks are shares of a company. Bonds are like a loan to a company.
Is there a difference between accounting for conversion of bonds and accounting for the conversion of preferred stock?
Bonds have discounts and premiums and accrued interest. Preferred Stock doesn't.
What are the three types of securities issued by a corporations?
common stock, preferred stock, and bonds
Are bank bonds the same as stock bonds?
No a bank bond is a low interest savings which is kept track of by a paper bond instead of an account number. Stock bonds are business stocks being traded around.
Where can one find information on how to buy bonds?
Talking to one's stock investment company can lead one to gaining more information on what bonds are as well as the processes behind purchasing the bonds themselves. Bonds are stock investments that allow individuals to own a percentage of a company.
Exchanges of Capital stock and bonds that occur between investors take place in what market?
stock
What is one of the stable investments?
corporate stock, municipal stocks, U.S savings bonds, corporate bonds?
What was the long term goal for the federal securities act?
To regulate stocks and bonds.
Generally which is riskier investing in common stocks againts investment in bonds?
Common stock is riskier than bonds. Common stock fluctuates in price as a matter of course. Bonds tell you What they will pay, When they will pay it and For How Long they will pay it. Assuming the company doesn't go into default, bonds are safe. (The risk of bonds is that companies DO go into default, which is why bonds are rated.)
What is difference between stock and product of company?
Warrants are frequently attached to bonds or preferred stock as a sweetener.
How do corporations raise cash?
In addition to issuing bonds, corporations may borrow directly from any loan source, such as banks. On occasion, corporations raise needed cash by authorizing and selling additional stock.
