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Firms raise capital for their investments by issuing Bonds and stocks. Issuing stocks is a complex task. So, financial services firms (Investment banks) act as underwriters.. that is, they quote the best price possible for the stock that household and institutional investors would be willing to pay. Also, there are other interesting features of stocks that attract financial sector, like trading of stocks, derivatives of stocks..etc
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What is a Preferred financial bond?
a bond that uses stock symbol and sells like stock
Who regulates UK stock and bond markets?
The FSA or Financial Services Authority.
What is face value?
the value printed on the face of a stock,bond or other financial instrument or document
What is deravaties?
Derivatives are financial instruments that normally peg their value to another financial instrument. For example, an option or a future is a derivative because it gets its value from a stock or bond.
What is an example of a financial service that often gets outsourced to others?
management of retirement savings, stock and bond investing, and protection against unforeseen events,
What is freedom finance?
Freedom Finance is a web based site offering ways to gain financial freedom such as debt relief, stock and bond information, anything financial with an emphasis in public and customer relations.
What are the most common types of investment fund by Brightbridge Wealth Management?
money-market funds balanced funds index funds pure bond funds bond/income funds tax-free bond funds junk/high-yield bond funds pure stock funds aggressive growth funds growth funds sector funds small cap stock funds mid cap, large cap international funds
What is a stock broker?
In the US a stock broker is actually a salesperson who works for a company that buys and sells financial securities in stock and bond markets. Other financial instruments can be options or commodity futures. The job of a stock broker in the US is to give advice to clients that wish to participate in the financial markets. The salesperson makes money by earning a fee from his company with each trade his or her client makes. The term "broker" is misleading in that the actual buying and selling of stocks for example, are done by traders on the floors of various stock markets.
How does the relationship between bond yields and interest rates impact the overall financial market?
The relationship between bond yields and interest rates impacts the overall financial market by influencing borrowing costs, investment decisions, and the valuation of assets. When bond yields rise, it can lead to higher interest rates, which can increase borrowing costs for businesses and individuals. This can potentially slow down economic growth and affect stock prices. Conversely, when bond yields fall, it can lower interest rates, making borrowing cheaper and potentially stimulating economic activity and boosting stock prices. Overall, changes in bond yields and interest rates can have a significant impact on the financial market's performance.
What is the differences between a stock and a bond?
A stock represents partial ownership in a company. A bond represents a loan to a company.
What is the purpose of convertible bonds?
A convertible bond is issued by financial institutions. It differs from standard bonds in that it can be converted into company stock. The purpose of this is to provide additional security for the customer.
What is a piece of ownership in a company called?
stock or share
