Mary trades in ______ real estate antiques paper assets that involves buying and selling of stocks and mutual funds. She is a ma
jor shareholder and the CEO of a large corporation. She needs capital to expand the company.Mary can raise capital by issuing _____ stocks bonds derivatives . This will assure lenders that Mary’s company will repay the loan. 1st blank-real estate, antiques, paper assets
2nd blank-stocks, bonds, derivatives
Mary trades in paper assets that involves buying and selling of stocks and mutual funds. She is a major shareholder and the CEO of a large corporation. She needs capital to expand the company. Mary can raise capital by issuing bonds. This will assure lenders that Mary’s company will repay the loan.
Paper Assets or Commercial Papers are short-term debt instruments issued by a corporation, usually to finance accounts payable and inventories, and for meeting short-term liabilities.
Bonds are fixed income instruments that represent a loan made by an investor to a borrower, in our case, Mary. It has an end date, and includes the details of the loan and its payments. These are usually used by companies to finance projects and operations.
