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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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A new business has been formed and anticipates raising equity investment from more than 100 individual investors, none of whom a

KatRina [158]

Answer:

The correct answer is letter "D": Limited liability company.

Explanation:

Limited Liability Companies or LLCs are entities where the owners are not personally liable for the debt of the company. Owners are taxed on the company's profits when they receive them only and they are not subject to file an individual tax return for it.

In case the company decides to become public, several standards must be met according to the <em>Securities and Exchange Commission</em> (SEC) for the firm to issue shares of stock or another type of investment vehicle.

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3 years ago

All of the following are characteristics of an effective team member except _____.

timurjin [86]

Gossiping about others

5 0

3 years ago

Read 2 more answers

The discount yield on a T-bill differs from the T-bill's bond equivalent yield (BEY) because I. the discount yield is the return

abruzzese [7]

Answer:

the base price used is the face value of the security and not the purchase price of the security and ii) a 360-day year is used. The bond equivalent yield uses a 365-day year and the purchase price, rather than the face value of the security, is used as the base price. Treasury bills are quoted on a discount yield basis.

Explanation:

7 0

3 years ago

Flex Co. just paid total dividends of $1,100,000 and reported additions to retained earnings of $3,300,000. The company has 725,

Ainat [17]

Answer:

$105.60

Explanation:

Given: Total dividend paid= $1100000.

Retained earning= $3300000.

Number of outstanding shares= 725000.

PE ratio= 17.4 times.

First finding earning per share.

Formula; $EPS= \frac{(paid\ dividend+ additional\ retained\ earning)}{number\ of\ outstanding\ shares}$

⇒ $EPS= \frac{(1100000+3300000)}{725000}$

⇒ $EPS= \frac{4400000}{725000}$

∴ $EPS= \$ 6.0689 \approx \$ 6.07$

Hence, earning per share (EPS)= $6.07.

Now, finding the appropriate stock price.

Price of stock= $EPS\times PE$

⇒ Price of stock= $\$ 6.07\times 17.4$

∴ Price of stock= $\$ 105.60$

Hence, $105.60 would be the appropriate price of stock.

3 0

4 years ago

To increase productivity, the clown factory decides to have a contest. the person who completes the most clowns on monday does n

Nadusha1986 [10]

The factory is using negative reinforcement.

You can either have reinforcement or punishment and either of those can be positive or negative. Reinforcement is used when you want a behavior to continue. Punishment is used when you want to stop that behavior from continuing. Positive means you gain something and negative means you get something taken away/stopped.

Since the factory wants it's workers to continue making more and more clowns, reinforcement is being used. Since the factory will take away the requirement of having to come to work on Tuesday, the reinforcement is negative.

5 0

4 years ago