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What is the difference between stocks and bonds?
Stocks (aka Equities): Stocks represent partial ownership of a corporation. If the corporation does well, its value increases, and you share in the appreciation. However, if the corporation goes bankrupt, you can lose your entire initial investment. Bonds (aka Notes): Bonds represent a loan you make to a corporation or government. For example, you can buy a US Treasury bond for $100, and get a guaranteed interest rate for 5-years, and can expect to get your $100 back at the end of that 5-years plus interest. Your risk is repayment of the principal (amount invested). Because loaning $100 to the U.S. government is much less risky than loaning $100 to the Brazilian government, U.S. government bonds pay a much lower rate of interest ("coupon") for borrowing your money. Stocks and Bonds .... How do they differ Stocks are EQUITY. They represent shares of ownership in a Corporation. A Stockholder is actually one of many owners of a Publicly Owned Corporation. If a Corporation dissolves for any reason owners of Common Stock (the main type of stock issued) receive the value of the sold assets of the Corporation AFTER everyone else is paid, including the IRS, Employees, Bonds, Accounts Payable, etc. Bonds are DEBT. They are sold by the Corporation in order to raise money for various purposes for use by the company. Bonds offer an interest rate to the Bondholder for the period of time that the Bondholder owns the bonds. Since bonds do not represent ownership, the bondholder could lose their investment if the Corporation dissolves, but are paid BEFORE owners of stock. When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company. Stocks, compared to bonds, have which of the following characteristics? (Apex)----- A. No guarantees
The type of corporate ownership that has first claim on profits and assets is called a?
Preferred stock holders are those who have the first claims ob profits and assets.
Which type of corporation is the standard type of corporation?
Often referred to as a C-Corp.
Can a corporation assume a residential mortgage?
Type your answer here... No, if the business is a corporation.
What type of ownership does john Lewis have?
deomocraticity
What Merger type in which both stock and assets are purchased?
In a scheduled assets and liabilities acquisition the buyer only obtains the scheduled assets and scheduled liabilities. In a Stock acquisition the buyer will own the stock and have ownership interest in the assets through the stock. The corporation also has responsibility for all the liabilities both real and contingent. In a stock for stock merger the ultimate owners of the stock would each have their pro-rata ownership interest in the assets.
What type of business has its value divided into shares of stock?
A Corporation
What type of business ownership does business in the US but is charteredin another country?
A foreign corporation.
What type of ownership is the north face?
The North Face brand is owned by VF Corporation.
What type of account is capital stock?
Capital Stock is an equity account. You may think of equity as ownership.
What does the term common stock mean?
The term common stock is a type of stock that allows shareholders dividends that vary dependent on the performance of a business. It is a type of corporate equity ownership.
What type corporation are owned by stockholders?
All corporations are owned by stockholders. Every corporation is required to issue stock.
What the difference between stocks and bonds?
Stocks (aka Equities): Stocks represent partial ownership of a corporation. If the corporation does well, its value increases, and you share in the appreciation. However, if the corporation goes bankrupt, you can lose your entire initial investment. Bonds (aka Notes): Bonds represent a loan you make to a corporation or government. For example, you can buy a US Treasury bond for $100, and get a guaranteed interest rate for 5-years, and can expect to get your $100 back at the end of that 5-years plus interest. Your risk is repayment of the principal (amount invested). Because loaning $100 to the U.S. government is much less risky than loaning $100 to the Brazilian government, U.S. government bonds pay a much lower rate of interest ("coupon") for borrowing your money. Stocks and Bonds .... How do they differ Stocks are EQUITY. They represent shares of ownership in a Corporation. A Stockholder is actually one of many owners of a Publicly Owned Corporation. If a Corporation dissolves for any reason owners of Common Stock (the main type of stock issued) receive the value of the sold assets of the Corporation AFTER everyone else is paid, including the IRS, Employees, Bonds, Accounts Payable, etc. Bonds are DEBT. They are sold by the Corporation in order to raise money for various purposes for use by the company. Bonds offer an interest rate to the Bondholder for the period of time that the Bondholder owns the bonds. Since bonds do not represent ownership, the bondholder could lose their investment if the Corporation dissolves, but are paid BEFORE owners of stock. When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company. Stocks, compared to bonds, have which of the following characteristics? (Apex)----- A. No guarantees
Can corporation be a stockholder in a corporation?
Yes, a corporation can be a stockholder in a regular C corporation. A common form of this is called a "holding company" but other types of companies regularly buy stock in other companies too. However, a corporation cannot own stock of an "S" type corporation. Only actual people can own shares of an S corporation.
What is difference between shares and stock?
Share: A unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business's day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.While shares are often used to refer to the stock of a corporation, shares can also represent ownership of other classes of financial assets, such as mutual funds.Stock:A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated. all stocks are fully paid up and can be traded in market while all share may not be fully paid up.
What is the difference between stocks and bonds?
Stocks (aka Equities): Stocks represent partial ownership of a corporation. If the corporation does well, its value increases, and you share in the appreciation. However, if the corporation goes bankrupt, you can lose your entire initial investment. Bonds (aka Notes): Bonds represent a loan you make to a corporation or government. For example, you can buy a US Treasury bond for $100, and get a guaranteed interest rate for 5-years, and can expect to get your $100 back at the end of that 5-years plus interest. Your risk is repayment of the principal (amount invested). Because loaning $100 to the U.S. government is much less risky than loaning $100 to the Brazilian government, U.S. government bonds pay a much lower rate of interest ("coupon") for borrowing your money. Stocks and Bonds .... How do they differ Stocks are EQUITY. They represent shares of ownership in a Corporation. A Stockholder is actually one of many owners of a Publicly Owned Corporation. If a Corporation dissolves for any reason owners of Common Stock (the main type of stock issued) receive the value of the sold assets of the Corporation AFTER everyone else is paid, including the IRS, Employees, Bonds, Accounts Payable, etc. Bonds are DEBT. They are sold by the Corporation in order to raise money for various purposes for use by the company. Bonds offer an interest rate to the Bondholder for the period of time that the Bondholder owns the bonds. Since bonds do not represent ownership, the bondholder could lose their investment if the Corporation dissolves, but are paid BEFORE owners of stock. When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company. Stocks, compared to bonds, have which of the following characteristics? (Apex)----- A. No guarantees
Can a partnership issue stock?
That depends on the type of partnership. If it's a corporation then yes. If it's an LLC then no.
