23 Nov Common stocks and bonds

common stocks and bonds Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment. With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, common stock, and preferred stock. Compare long-term instruments and short-term risks, in terms of the various types of risk to which?investors?are exposed. Explain your answers. What methods can be used by the FED to influence interest rates? Are these methods effective? Use examples where appropriate. If a company is going to finance a project entirely with retained earnings, what would be the cost of that capital? Why? ? ? ? ? Answer preview Stock is simply a share of a company that an individual or group holds. In order to raise capital, corporations usually issue stocks and entitle?stockholders?to a partial ownership of the company. Two of the most?commonly traded sticks are the common and preferred stock. On the other hand, a bond is long-term contract where borrowers agree to make payment of the principal amount together with interest to?bondholders?at a specified date. APA 1164 words