Compare and contrast the characteristics of bonds, common shares and preference shares from the perspective of an investor. Use the following template. Capital Market Equity Market Characteristics Debt Market Type of Securities Bond Preference Common Shares Shares Ownership Voting Right Maturity Date Potential for Capital Gain Regular Returns (Describe source and whether affected by firm's profits) Reliability of Investment Income (High, low) Priority of payment during liquidation (e.g. 1*, etc.) (8 marks)

Compare and contrast the characteristics of bonds, common shares and preference shares from the perspective of an investor. Use the following template. Capital Market Equity Market Characteristics Debt Market Type of Securities Bond Preference Common Shares Shares Ownership Voting Right Maturity Date Potential for Capital Gain Regular Returns (Describe source and whether affected by firm's profits) Reliability of Investment Income (High, low) Priority of payment during liquidation (e.g. 1*, etc.) (8 marks)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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