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Beginner Stocks and Bonds Knowledge

1. Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment.

2. With all investments, there are an expected percentage return and certain types of return that can be expected. Describe the possible forms in which a return could be received for bonds, common stock, and preferred stock.

Explain your answers thoroughly, use specific examples, and cite your sources.

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1. Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in the corporate environment.

A bond is a financial that entitles the holder to collect a fixed amount at regular intervals from a firm/company. A stock, on the other hand, is a financial instrument that entitles the holder to receive residual income from a company and also participate in the corporate objectives-setting process.

SIMILARITIES
1. Both bonds and stocks receive income from the firm.
2. Both are capital ...

Solution Summary

The expert contrasts the differences/similarities of common stocks and bonds. The possible forms in which a return could be received for bonds, common stocks and preferred stocks.

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