• Discuss the project you have planned.

I work for The XYZ Inc., a business that is a publicly owned corporation. Plans have been designed for a major business expansion that would take place over the next several years. You know your company will need to raise money to finance this project. To raise the amount of money we need for this expansion, we would issue common stocks to those that want to be a stockholder of the company.

• Are there any advantages to issuing bonds over stocks? Identify one advantage and explain why it is an advantage.

A bond is its issuer's written promise to pay the par value of the bond with interest. One advantage of issuing bonds would be that you have the added interest which can be claimed as expenses at the end of the year. (Wild, 2018)

• Are there any advantages to selling stocks instead of issuing bonds? Identify one advantage and explain why it is an advantage.

Stock is used to gaining capital (owner's financing). An advantage would be that it is a fixed source of income versus a bond gaining interest in it. It is an advantage because it stays the same amount each time. (Wild, 2018)

• If you owned this corporation, would you want to sell your company stock or issue a bond? Explain your decision.

If I owned this corporation, I would sell the company as stock because it is a fixed source of income. I would do this because a steady amount of income is a good way to keep the company running well.

• Now, imagine you sell the stock. Would you issue common stock or preferred stock? Why?

If I issue stock, it will be the preferred stock. I would issue this because a preferred stock has special rights that give it a priority (or senior status) over common stock in one or more areas. Special rights usually include a preference for receiving dividends and assets in liquidation. Preferred stock has the rights of common stock unless the corporate charter excludes them. A common exclusion is the right to vote. (Wild, 2018)

• As an investor who wishes to make as much profit as possible in the long term, would you want to buy stocks or bonds? Explain your answer.

If I was an investor, I would want to buy stocks. Bonds will not have the same value once they are paid. Stocks are parts of the company that people believe will do well which in return increases the stock value over time.

• Provide a specific example of an investment project and describe it. You're suggesting that issuing stock results in "...a fixed source of income versus a bond". It's not clear to me what you are referring to or why this is an advantage of issuing stock. Please explain. How can I fix my answer to this question, Are there any advantages to selling stocks instead of issuing bonds? Identify one advantage and explain why it is an advantage.