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3 years ago

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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| 50 POINTS | If The Oil Prices Around The World Rise , What Will Happen To The Oil Production In Texas?

timofeeve [1]

The oil will increase in texas

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3 years ago

Read 2 more answers

An acquisition premium is the amount by which the price offered for an existing business exceeds the Select one: a. amount paid

MAVERICK [17]

Answer:

d. pre-acquisition market value of the target company.

Explanation:

An acquisition premium is the amount by which the price offered for an existing business exceeds the pre-acquisition market value of the target company.

An acquisition premium gives the difference between the actual amount of money paid in acquiring a target firm and the estimated real value of obtaining the firm before the acquisition.

Acquisition premium are usually recorded on the balance sheet as "goodwill."

8 0

3 years ago

A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50

34kurt

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

REVENUES

Proceeds from sale of machine

$0 $50500 $50500

COSTS

Purchase price $0 -$75000 -$75000

Direct labor -$56000 -$37000 19000

(11200*5 = -56000)

(7400*5 = -37000)

Income (loss) -$56000 -$61500 -$5500

Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)

6 0

3 years ago

A gift of money or goods from the groom or his kin to the bride's kin is referred to as:

Bond [772]

Bride wealth or bride price

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3 years ago

quizlet If a country can produce more of a good or service, it has a(n) advantage. If the country can produce a good or service

poizon [28]

If the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.

<h3>What is comparative advantage?</h3>

In an economic model, agents have a comparative advantage over others if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to the trade.
Comparative advantage describes the economic reality of trade advantages for people, firms, or nations as a result of disparities in their factor endowments or technological progress.
(The absolute advantage, comparing output per time (labor efficiency) or per quantity of raw material (monetary efficiency), is typically considered more intuitive but less accurate – productive trade is possible as long as the opportunity costs of manufacturing commodities vary between countries.)

Therefore, if the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.

Know more about comparative advantage here:

brainly.com/question/14846093

#SPJ4

7 0

2 years ago