Movement of Political

9. Describe two examples of debt investments. (1-2 sentences. 1.0 points): US Treasuries (Government debt - what the government sells to pay for its) and corporate bonds (debt issues by companies to pay for usually new things the company wants to)

* Bond - A type of debt or a long-term promissory note, issued by the borrower, promising to pay its holder a predetermined and fixed amount of interest each year. Bonds provide the borrower with external funds to finance long-term investments

The world of stock is very broad. According to Investopedia, a stock is “a share in the

required returns. Features of the major types of bond issues are presented along with their legal issues, risk

The entity that issues the bond is known as the Issuer and when you purchase one,

Finance is a vast area of facts, principles and theories dealing with various ways of raising and using it by individuals and others. It deals with how individuals and companies divide their business income between consumption and how to choose from among the available investment opportunities and how they raise money for increased consumption or investment.

Stocks or shares are essentially a part ownership of a company & that companies assets & earnings. As you buy more stock your ownership in the company increases. Stocks are sold by a company to raise funds to help the company grow. The first stock issue is called an initial public offering or (IPO). The owners sell control of the company in the form of stock. Shares can then be resold on the stock market. Stock prices are detmined by expectations of company earnings, or profits.

I am a junior at Missouri State and majoring in Finance. Finance is the field that deals with investing money and studying cash flow data. Finance majors generally end up working for a company studying the amount of risk involved in a project and calculating the return that can will be gained from taking on the risk associated with each project. People who work in this field are considered to be part of corporate finance. There is also the opportunity to become a consultant and help outside persons figure out the best investment plans to suit their individual needs, this is known as personal finance.

Stocks – Owning shares of a company means you own a piece of that company. You can own shares of a small company with one location and less than a million dollars in annual revenue to a large multinational company with billions of dollars in annual revenue. The types of stocks include domestic, international, penny, growth, value, and many more. Many stocks pay dividends that you can take as cash or you can reinvest and purchase more shares. You can

Bonds are generally made to large organizations. It is an enormous loan, typically funded by a number of sources. The borrower promised to repay the bond at an agreed upon date (maturity of the bond). In the interim, the corporation makes interest payments to the bondholder(s). Bonds are desirable because the interest is extremely low compared to other forms of borrowing and the interest paid is a tax-deductible business expense.

-Stocks represent partial ownership of a corporation. If the corporation does well, its value increases and you share in the appreciation. However, if the corporation goes bankrupt, you can lose your entire initial investment.

A stock market is a conglomerate of buyers and sellers wherein stocks are listed and traded. These stocks can be described as securities which are listed in a stock exchange along with privately traded securities. Stock markets are institutions of corporations which focus on bringing the buyers and sellers of organizations on one domain.

A debt, instead, is in general an amount of money borrowed from one party to another. A debt instrument gives to the borrower a claim towards a person, a company or whoever is the lender, under some conditions, such as the interest rate and the date

Capital markets typically involve issuing instruments such as stocks and bonds for the medium-term and long-term. In

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity. Interest is usually payable at fixed intervals (semi-annual, annual, and sometimes monthly). Very often the bond is negotiable, i.e. the ownership of the instrument can be transferred in the secondary market.