Comparison between Bonds And Stock Equity

Bonds Stocks Advantages of bonds: * Bonds be debt, not fair play, so the ownership and chink of the caller are not diluted. * Tax-deductible in pastime expense. * The wiped out(p) interest rates on bonds allow for positive fiscal leverage. Advantages of a corporation * Simple to become an owner * well to transfer ownership * Provides limited liability Disadvantages of bonds: * pretend of nonstarter; the debt must be paid back regularly, or creditors willing force legal action. * Negative impact on coin flows. Stockholders rights * Voting (in person or by proxy). * proportionate distributions of net profit * Proportionate distributions of as practises in a liquidation Characteristics of Bonds Payable * When event bonds, potential buyers of the bonds are given a prospectus. * The companys bonds are issued to investors with an underwriter. * The trustee makes sure as shooting the issuer fulfills all of the provisions of the bond indenture.

Types of Capital Stock Common Stock * grassroots suffrage declension * Ranks after preferred stock * Dividend set by board of directors Preferred Stock * perceptiveness oer uncouth stock * ordinarily has no voting rights * unremarkably has a fixed dividend rate Treasury Stock * No voting or dividend rights * Contra equity account Bond Classifications * debenture bonds Not secured with the pledge of a specific asset. * due bonds may be retired and repaid (called) at any time at the election of the issuer. * Redeemable bonds May be turned in at any time for repayment at the option of the bondholder. * redeemable bonds May be exchanged for other securities of the issuer (usually shares of common stock) at the option of the bondholder. Stock Classificat! ions Authorized Shares The maximum number of shares of slap-up stock that can be sold to the public. * Issued shares are... If you want to doctor a full essay, order it on our website: OrderEssay.net

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