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Because the future cashflows are more uncertain for a stock than a bond.
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∙ 12y ago
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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.
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.)
Which of the following is not an advantage of issuing bonds instead of common stock?
Earnings per share on common stock are always lower.
What investment bank underwrote the most common stock and bonds in 2004 and 2005?
Citigroup
Which investment bank underwrote the most common stock bonds in 2004 and 2005?
citigroup
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 are the three types of securities issued by a corporations?
common stock, preferred stock, and bonds
Which of the following is not an advantage of issuing bonds instead of common stock?
Earnings per share on common stock are always lower.
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 investment bank underwrote the most common stock and bonds in 2004 and 2005?
Citigroup
Which investment bank underwrote the most common stock bonds in 2004 and 2005?
citigroup
What does a balanced fund own?
Assets in this type of fund are usually invested in a combination of conservative bonds, preferred stock, and common stock
What is preferred stock and why is the US Government buying it as part of the bailout plan?
Unlike common stock, preferred stock can be converted to bonds at the discretion of the owner. The government, by buying preferred stock, gets the rapid growth of stock with the safety of bonds. If there is any money left over after bankruptcy, bond holders are paid first. If there is any money left, after that, common stockholders are paid.
What are the three basic types of securities corporations issue to raise long-term financial capital?
common stock, preferred stock, and bonds
What are the three basic types of securities corporations issue to raise long term financial capital?
common stock, preferred stock, and bonds
When seeking long-term financing an advantage of issuing bonds over issuing common Stock is that stockholder control is not affected?
TRUE
When seeking long term financing an advantage of issuing bonds over issuing common stock is that stockholder control is not affected?
TRUE
