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2 years ago

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

Business

2 answers:

Likurg_2 [28]2 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]2 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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stiv31 [10]

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3 years ago

A firm has a current price of $40 a share, an expected growth rate of 11 percent and expected dividend per share (D1) of $2. Giv

Xelga [282]

Answer:

d. 16% - buy

Explanation:

R = (D1 / P0) + g

Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11

Expected Return = R = ($2/$40) + 11%

R = 0.05 + 0.11

R = 0.16

R = 16%

Expected Return is higher than the required return of 12%. Hence, it should be bought (it is expected to give higher return than required)

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3 years ago

When one firm is able to dominate the market and no other firm is able to enter the market, a(n) ______________ has formed.

matrenka [14]

B. Monopoly is the correct answer

3 0

3 years ago

Leila is giving a speech about a new café that recently opened near her college campus. Her audience consists of her fellow clas

Hitman42 [59]

Answer: Discussing about the services and inexpensive items in the menu.

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She can also persuade them by telling them the services provided by cafe. The nearness of the cafe from the campus could save time of the students, thus it could be a good point to attract the students.

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3 years ago

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Lerok [7]

Answer: an obligor

Explanation:

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In this case, Floyd is an obligor. An obligor os defined as an individual who by contract or due to a legal procedure, undertakes an obligation for another individual.

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3 years ago