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Call provision or sinking fund make bond more or less risky?
A call provision can make a bond more risky for the investor because it gives the issuer the option to redeem the bond at a predetermined price before maturity, potentially preventing the investor from earning interest for the full term. On the other hand, a sinking fund provision can make a bond less risky for investors as it requires the issuer to set aside money regularly to retire a portion of the bond issue before maturity, reducing the overall outstanding debt and default risk.
What are people who use money to make something for a profit?
investor
Why would an investor sell a covered call?
An investor will sell a covered call if the price of the stock or contract is losing its value. This way, the option on the terms of the contract will not be a zero loss, but close to something that is in the benefit to the investor. The purpose of buying a covered call is to make money with the intention of the stock climbing rather than decreasing.
A bond is simply a form of an interest bearing note?
A bond is a debt investment where an investor loans money to an entity, typically a corporation or government, for a defined period at a fixed or variable interest rate. The issuer of the bond agrees to make periodic interest payments to the bondholder and repay the principal amount at the bond's maturity.
What type of education is needed to become an investor?
No education is required to be an investor. The only requirement is to have money. If you want to keep the money and make sound investments, you can use all the education you can get!
How does an equity investor make money?
Selling an investment for more than they paid for it
What describes speculation?
speculation is a gamble that the price of the stock will increase and an investor will make money.
What goal leads an investor to put up money to start a business?
it to make a decision
What is a lending investor?
A Lending Investor is a person who make a practice of lending money for themselves or others at interest and who are not organized under any specialized chartered law.
What is the difference between investor and creditor?
A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.
What describes stock speculation?
speculation is a gamble that the price of the stock will increase and an investor will make money.
Explain the difference between an investor and a creditor of a business?
A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.
