Leela Crosby And Alysha Shroff: Case Study

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Leela Crosby and Alysha Shroff I did the questions and Alysha did the vocabulary ACTIVITY 1 Bond- a certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time. Capital Gains- a profit from the sale of property or of an investment. Capital Goods- goods that are used in producing other goods, rather than being bought by consumers. Capital Loss- is the result of selling an investment at less than the purchase price or adjusted basis. Common Stock- shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company. Dividend- a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). Equity- the value of the shares issued by a company.…show more content…
Corporations have three methods available for raising new capital in the free enterprise system. retained earnings- putting money from the company’s profits back into the business after taxes and dividends, if any, have been paid borrowing- taking out loans or issuing bonds which are sold to investors equity financing- issuing new shares of stocks Although we frequently hear the words “stocks and bonds” use together, these two types of securities differ significantly. A person who buys a bond essentially is lending money to the issuer of a bond (usually a company or a branch of government). The issuer of a bond promises to repay the amount of a loan at a specific time (called the date of the bond’s maturity). Between the time the loan is made and the date of maturity, the issuer also promises to pay the bondholder a specified amount of interest at specified

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