Purpose For Charging Interest And Debt At Two Topics

Not only is debt an issue when it comes to biblical principles, the amount of money that is given to the people from the government is an issue. The amount of money spent on government assistance programs causes a spike in the budget. Government is to act as a strengthener for people who are in need. By issuing

The Bible points out that once a college student takes out money he or she is instantly a borrower who becomes a slave to the people he or she borrowed from. Proverbs 22:7 say “The rich rule over the poor, and the borrower is slave to the lender” (NIV). Being a slave to the lender is evident with everything in life that an individual borrows. When someone borrows money, it immediately weighs upon the individual’s life and becomes a priority before

revolving loan (such as a large line-of-credit or a car loan), which would make it harder for them

There are three main reasons why a corporation may be interested in calling a bond.

I, myself, I am not expert in economy; nonetheless, will try to get my point across. Policy makers, economist, bankers, and so on, usually advise is: do not take a loan unless the person, agency, country know, or at least have a plan on how to repay. In fact,

| |One reason corporations sell corporate bonds is to help finance their ongoing business activities. |

According to an article in the Fordham Law Review (2013-2014), more Americans are utilizing student loans to finance higher education (Negri, p. 1908). Negri states that "as of June 30, 2013, student loan balances in the United States reached a historical high of $994 billion" (p. 1908). People are willing to take on a seemingly insurmountable amount of debt and, hope that acquiring an education will increase their income so that they will be able to pay-off these loans. While this is typical behavior for many Americans, there is an ongoing debate as to whether borrowing and lending money is prohibited for Christians and if Christians should assist others in acquiring a loan.

The “Stock Market” is a term that actually describes several markets such as the New York Stock Exchange NASDAQ, where the stocks of companies are traded. Shares in a company are sold and the shareholders then become part owners of the company. Offering shares of stock raises money for continued research and development of company products or services.

     The stock market, to me, is like another world of credit and debt. There were mass speculations through out the 1920’s that led to record volumes of

Dear Carl, I would like to start by reassuring you, that the Bible does not forbid borrowing or filling bankruptcy to a degree. However the way in which you borrowed, was not advised in the Bible as seen in (Prov. 22:7 NIV) “The rich rule over the poor, and the borrower is slave to the lender.” However the borrowing of money is permissible when used for the right reasons, (Grudem, 2003, para. 23) “In borrowing and lending, we can reflect many of God’s attributes. We can demonstrate trustworthiness and faithful stewardship, honesty, wisdom, and thanksgiving.” As you can see Carl the Bible doe not forbid you from borrowing, it is encouraged when done for the right reasons. Now to the issue of bankruptcy, what bankruptcy means is you are basically

“Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry. This above all: to thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man. Farewell. My blessing season this in thee”

Lending investments allow you to be the bank. They tend to be lower risk than ownership investments and return less as a result. A bond issued by a company will pay a set amount over a certain period, while during the same period the stock of a company can double or triple in value, paying more than a bond - or it can lose heavily and go bankrupt, in which case bond holders usually still get their money and the stockholder often gets nothing.

There are two basic ways of financing for a business: Debt financing and equity financing. Debt financing is defined as 'borrowing money that is to be repaid over a period of time, usually with interest" (Financing Basics, 1). The lender does not gain any ownership in the business that is borrowing. Equity financing is described as "an exchange of money for a share of business ownership" (Financing Basics, 1). This form of financing allows the business to obtain funds without having to repay a specific amount of money at any particular time. There are also a few different instruments that could be defined as either debt or equity. One such instrument is stock options that an employee can exercise after so many years with the

In the financial markets, the most common forms of marketable securities are stocks and bonds. Though they have some similarities to each other, they differ greatly in many aspects. Broadly speaking, both financial instruments enable one to invest in corporations, public and/or private, with possible profitable returns in the future.

     Interest is the fee paid for borrowing money. Most individuals or business owners pay simple interest on a short-term loan, which is usually a loan of up to 1 year. The amount of interest charged by a bank depends on three factors: