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.
A new source of financing is creating a vast new wave of mergers and acquisitions. The financing comes from “private equity” firms. These companies pool billions of dollars from private investors and then use that money to seek out and acquire companies that they believe can be made more efficient and effective, and therefore more valuable (Plunkett
A privately negotiated share repurchase is the least common method of buying back shares. In a privately negotiated transaction a firm decides to repurchase shares from a major shareholder. There are two key motives why a firm might engage in a privately negotiated  repurchase. First, a firm might fear that a major shareholder wishes to acquire the firm and replace its management. In such a case, the firm approaches the major shareholder to acquire its shares often at a significant premium above market price (Peyer & Vermaelen, 2005).
And when these shares are transferred from one trader to another, these shares will become secondary stocks. IPO is one good example of passive income opportunity. In the stock market, rumors about an IPO stimulate risk appetite. During economic slowdown, IPO is hardly heard unless the industry it belongs to is resilient. So, a passive income opportunity begins when the economy has continuously been growing especially if the main recipient is the company
6. You can adjust your monthly funding into the settlement program up or down depending on real-world conditions in your financial life. If your income fluctuates from one month to the next, or you get hit with an unexpected expense, it won't torpedo the whole program. The built-in flexibility of debt settlement gives it a huge advantage over other options, all of which require a fixed monthly payment. Once you're made the determination that debt settlement makes sense for your situation, you'll need to decide whether to go it alone or seek professional assistance.
The dividends are taxed as well. As you can see, with the money being taxed through the market, and also through dividends it is taxed two times. But, debt is only taxed one time, so when the firm makes money it gets taxed immediately. However, when the firm pays interest to its creditors the interest is not taxed. So the interest paid on debt are treated differently than dividends paid out to
They are: Upper Control Limit Lower Control Limit The companies buy or sell marketable securities only if the cash balance is equal to any one of these. Once the cash balances of a business reaches the upper limit it purchases a certain number of saleable securities that helps them to come back to the desired level. If the cash balance of the company reaches the lower limit then the company trades its saleable securities and gathers enough cash to fix the problem. It is normally assumed in such cases that the average value of the sharing of net cash flows is zero. Similarly, it is understood that the sharing of net cash flows has a risk.
Flexibility One of the big advantages of short-term investing is that you have some flexibility. You do not have to tie up your money for an extended period of time with this type of investment, as is the case, for example, for the many people who purchase a corporate bond that has a maturity of somewhere between 10 and 30 years. With this investment you have to keep it for a long time before it matures. You could sell it in the secondary market, but you may not get what it is worth. 2.
Disadvantages of Short-term Debt a. Risk. Short-term debt reduces liquidity. The principal must be repaid within a year unlike a long-term debt wherein you have an enough time to gather funds for the repayment of debt. If the company cannot repay the principal with another source, then the company is in danger of going
1) a. current liability: Money that a business owner must pay to a creditor within 12 months of the balance sheet date is a current liability. Ideally, short-term assets, such as cash and accounts receivable, should more than offset short-term liabilities, such as accounts payable, notes payable and payroll. If they do, the company 's short-term liquidity position is positive, which suggests the company will likely meet its cash-flow needs and remain a going concern. It is wise for a business owner to remain alert to his company 's current liabilities and the cash and assets that will be turned to cash within one year to meet these obligations. 1) b.
Individuals may struggle with making their own deductions from pay, but this principle is clearly outlined in Corinthians 16:2. This verse encourages individuals to plan a date to set aside a set amount of money for financial needs. This is a better option than the large return because the money will earn interest over the course of time. These options are ideal for someone that wants easy access to the money in savings. Although the certificate of deposit has time constraints, there are options that are for less than a year and if he chooses to have a one-time refund he would not have availability to the money for at least a
The amount of money you save will depend on your overall debt. But if you are able to obtain a loan with a lower interest rate, you could save a great deal of money. Likewise, instead of paying several different interest rates, you are simply paying one, low interest rate on your debt consolidation loan. No matter what your reason for considering debt consolidation loans, it is important that you check with a variety of different lenders, so that you can obtain the best possible rates and terms of service. You can check with local lenders as well as online lenders.