What do you call those investors who buy shares of stocks of a company and become legal part owner of the company? * Bondholder Srockholder

Q: What is a share? What is a bond? What is the difference between holding the share of a company…

A: Shares are the part of Equity of the company. Bonds are the part of liability for the company.

Q: A limited company can issue shares to investors who then become shareholders in that company. This…

A: A shareholder is any individual, corporation, or organization who holds stock in a firm. A…

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: A real person (Ahmet) owns some shares of a publicly traded company (Asia AŞ). Ahmet wants to make a…

A: Companies issue shares in order to make raise the funds by way of equity method. Under it the holder…

Q: how the zero-coupon rate bond provides return to the investor and gives the advantages to the…

A: A zero coupon bond is a fixed income security which is sold at a deep discount to its face value.…

Q: When a company decides to issue capital on the stock market what is the process called? (a) An…

A: A) An Initial Public Offering means a company issuing capital to public for the first time on stock…

Q: If you own a company what you prefer to issue ordinary shares or bonds, explain why?

A: Shares of a company represent the ownership, and a shareholder is considered an owner of the company…

Q: Mr. Ahmed would like to buy securities. Which of the following securities should he not to buy to…

A: A business entity finances its operations through various sources of funds such as equity and debt…

Q: How is an investment banker compensated for promoting and facilitating the sale of a company’s…

A: Investment banker (IB) is the special facility given by the banks or separate institutes which…

Q: The equity method of accounting for long term Investments in shares is used by investors when: a)…

A: The equity method is defined as an accounting technique used by a company to record the profits…

Q: Stocks or equity securities are: O a. Solely used by large corporations O b. Managed by your local…

A: There are various sources of finance such as debt, equity etc

Q: Should the qualifications of the board of directors play a role in your decision whether to buy the…

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: Discuss and explain why a company may choose to raise capital by issuing bonds instead of issuing…

A: Capital is the source where the company raised money to run the business. There are two ways: Bonds…

Q: Which of the following can be described as involving direct finance? A. People buy shares in a…

A: Direct finance does not involve any intermediate party or a third party. There is a direct…

Q: Which of the following forms of business organization can finance its operation through acquiring…

A: The corporations are considered as separate legal entity. They have different types of methods for…

Q: What are the different sources of risk for an investor who holds a corporate bond, what are…

A: Both  bonds and common stocks are financial securities and hence the holders of these securities…

Q: What are the advantages of holding stock in a company versus holding bonds issued by the same…

A: Stock is a security that represents the ownership of the fraction of a corporation. Bond is a debt…

Q: __________ securities are investments in preferred or common stock that represent ownership in a…

A: Definition of sources of finance: Companies can raise capital in two ways. 1 ) Debt 2 ) By issuing…

Q: Which is correct about debt securities? a. Debt securities make the holders owners and give them the…

A: a and c are not correct because debt securities holders are NOT the owners. They are lenders to the…

Q: Discuss risks and returns characteristics of investing in ordinary shares and corporate bonds from…

A: A bond is a financial instrument that represents a loan made by an investor to a borrower (usually a…

Q: What are the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

Q: What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the…

A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…

Q: What benefits might a company gain from having its shares listed on a stock exchange? +resources

A: Companies raise equity financing by listing shares on stock exchange.

Q: one share of stock in corporation? a. Stockholder b. Seller c. Customer

A: Option A is the Correct answer i.e  Stockholder.

Q: Discuss the reason(s) behind the conflict of interest between corporate stockholders and…

A: Corporate Stockholders: A stockholder is the owner of the shares purchased of a company. There are…

Q: In a corporate corporation, which of the following is included in the equity section? Investing in…

A: Equity section of a corporation business represents amount attributable to shareholders of the…

Q: What do you know about stock exchange, discuss its main functions. How to invest in the stock…

A: Stock exchange is an integral part of the capital market and financial market across the globe.

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown…

A: Treasury stocks are the shares which are reacquired by the company that are already issued to the…

Q: How much is the authorized share capital? How much is the issued share capital? How many shares of…

A: The authorized share capital is the maximum amount of share capital that the company is authorized…

Q: How will investors maximize the returns of corporatebonds or redeem their corporate bonds?

A: Corporate bond is defined as the bond, which is used to issue through the company for increasing the…

Q: A corporation may raise funds by offering shares of stocks to investors.  Express your idea or…

A: A company can raise funds by issuing debt or shares. Both debt and shares have advantages and…

Q: Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if…

A: Equity Stock represents the equity shares of a company. Equity shares are the part of company owned…

Q: Discuss the nature of stock as an investment.  Do most stockholders play large roles in the…

A: Stockholders are the proprietors of a corporation. It is a kind of investment which provides high…

Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…

Q: ecrease the per-share book value of the stock held by shareholders b. To increase the per-share…

A: A share repurchase may have an impact on a company's BVPS. Because BVPS is used to calculate the…