What is the difference between stocks and bonds


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Question 1. What is the difference between stocks and bonds? Which represents more risk to the organization? Why?

Question 2. Does an organization receive money when its stock is traded in the secondary market? How does the organization affect its stock price? Why is an organization concerned about its stock price in the secondary market?

Question 3. Which intermediary is the primary source of working capital for small business? What obstacles impede it from using other intermediaries? Explain why and how large organizations develop other relationships.

Question 4. What are some agencies in the Department of Commerce? What are some tools they use to regulate their industries? Why is it effective to have agencies that focus on specific industries?

Question 5. Please provide an example of each of the ratios below and explain how a manager might use the ratios to better improve performance.

o Profitability ratios
o Management efficiency ratios
o Leverage ratios

Question 6. What are the 3 main financial statements and how do they work together? What does each statement show managers, investors? How can each statement be manipulated?

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Finance Basics: What is the difference between stocks and bonds
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