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Lorico [155]
3 years ago
10

What is the main difference between a stock and a bond?

Business
2 answers:
Likurg_2 [28]3 years ago
7 0

Answer:

The difference between stocks and bonds is that stocks are shares in the ownership of a business, while bonds are a form of debt that the issuing entity promises to repay at some point in the future. In general, though, bonds offer a guaranteed payback, and stocks do not.

baherus [9]3 years ago
5 0

A bond is a debt instrument. The company or government issuing it borrows your money and pays you a fixed amount of money for the use of the loan you have made available to the company or government. The selling price is usually what the face value of the bond is, but this can vary according to interest rates determined by the Federal Reserve.

A stock is ownership. You own a fraction of the company you've invested in. Sometimes a company pays a dividend. That means that the company has excess funds and decides to pay its shareholders a fraction of what the company brings in.  When you buy a stock, you expect to sell it at a higher price than what you bought it at. That's called a capital gain. It's another source of income.

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It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive
Arlecino [84]

Answer:

It describes the problem of transaction costs and negotiation.

Explanation:

Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).

Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.

4 0
3 years ago
On a shopping​ trip, Melanie decided to buy a light blue coat made from woven fabric. A tag on the coat stated that the price wa
ra1l [238]

Answer:

Consumer surplus is $15.99.

Explanation:

Melanie decided to buy a coat priced $79.95.  

When she brought a coat to the sales clerk, she found out that it is on a 20% discount and she has to $15.99 less than the original price.  

This means that her consumer surplus is at least $15.99.  

The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.  

Melanie was willing to pay $79.95. But she actually paid $63.96. The difference between the two is $15.99.  

6 0
3 years ago
From the following data, calculate the ( a ) conventional and ( b ) modifi ed benefi t/cost ratios using an interest rate of 6%
ExtremeBDS [4]

Answer:

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4 0
3 years ago
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report (Choos
Lana71 [14]
I’m sorry I just need points
5 0
3 years ago
In Opulencia, the marginal propensity to save is only 0.10. In an effort to promote the virtues of saving, the government starts
BartSMP [9]

Answer:

B) The multiplier falls, making spending less powerful.

Explanation:

As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.

Also,

MPS + MPC = 1

And,

Multiplier = 1 ÷ (1 - MPC)

or

= 1 ÷ MPS

In addition to this, MPS has the negative relationship with the multiplier

that means if the MPS increased then the multiplier decreased and vice versa

Therefore the option B is correct

4 0
3 years ago
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