Case Analysis : Gonzales Food Stores

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The business that we are delving into is Gonzales food stores. This company is seeking outside funding such as bonds, stocks and “going public.” In addition, we will review the most advantageous methods of investing and explore the different financial markets and what best fits the needs of this company. A, brief overview of the different vehicles available to utilize when investing. The financial market is where investors trade commodities, stocks, mutual funds, stocks, bonds, and traditional bank accounts which all can accrue interest. The different options provide very different options and different levels of risk. One can invest in something on the conservative side, moderate or be aggressive. Depending on the type of investor you…show more content…
The store gains the power to operate freely as they see fit. The bond holders are not like equity partners, or shareholders where they own a percent of the company, rather the bond is sold and the a certain percentage is given the owner of the bond which creates leverage and the owner of the store can use those funds for daily operations and not their own funds or family funds. “When you buy a bond you are not getting any ownership in the company, but rather you are buying a piece of the company’s debt. As a bond holder you have no voting rights and do not get to share in the profits of the company, however you do receive other advantages that you do not get when buying stock in a company.” (Learn Bond, 2016). Further, Gonzales store could chose to sell Stocks however, that direction is giving up percentages of the store and opens the company up to investors outside of the family to have voting rights, partnerships, and as well they can tell you how to run the store. The mere advantage is that the owners could have outsider’s assist in operation and perhaps, see new avenues of creating and earning more profits. If the store earns a profit then the stock holder does as well. The inverse, if the store is not and needs thereby, needs to declare bankruptcy, then the stock holders are the last to be paid back. Further, a number of key method’s, are known as the
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