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To be answered asap need complete solution and explanation: A. Written Work/s ACTIVITY 1 Standard Directions: Identify the following concepts. Write your answer on the
To be answered asap need complete solution and explanation:
A. Written Work/s ACTIVITY 1 Standard Directions: Identify the following concepts. Write your answer on the space provided. : 1. It is a fixed income instruments that represents a loan made by an investor to a borrower. 2. A tool used by market investors and commercial managers in describing the stock market. 3. A general term used to describe the ownership certificates of any company. 4. This refers to spreading payments over multiple periods. 5. A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debt's property. ACTIVITY 2 Directions: Solve the following problems. A loan of P40,000is to be amortized by equal payments at the end of each quarter for 18 months. I interest is 10% compounded quarterly, find the periodic payment and construct an amortization schedule.If P10M is one part of the business, then A owns -, B en A owns 21 B and C own , and Downs, abnod bas As a business grows, one challenge is raising enough money to finance its expansion. There are usually two options to address this. They can either borrow money from a bank or sell part of the business to investors. The money obtained is used to fund growth. Banks however, will not always lend money to business. Another option involves issuing Stocks. The business gets cash for expansion from investors in exchange for giving up a fraction of control. Definition: pouts / 2up. A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares." Is is unoles of mylloyd abitursitiold innonsi ) Stocks are bought and sold predominantly on stock exchanges, though there can be private sales as well, and are the foundation of many individual investors' portfolios. These transactions have to conform to government regulations which are meant to protect investors from fraudulent practices, Historically, they have outperformed most other investments over the long run. These investments can be purchased from most online stock brokers. Stock investment differs greatly from real estate investment. :rovitosidO oiliosge \\aegisT gaines Iodi ous woloud Understanding Stocks Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a shareholder) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets and earnings 9gbolwon 10114 to noisolqza Stock holders do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a "person" means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders. This distinction is important because corporate property is legally separated from the property of shareholders, which limits the liability of both the corporation and the shareholder. If the corporation goes bankrupt, a judge may order all of its assets sold - but your personal assets are not at risk. The court cannot even force you to sell your shares, although the value of your shares will have fallen drastically. Likewise, if a major shareholder goes bankrupt, she cannot sell the company's assets to pay off her creditors. MOIraq50 20901 12401230 283908 Stockholders and Equity Ownership What shareholders actually own are shares issued by the corporation; and the corporation owns the assets held by a firm. So if you own 33% of the shares of a company, it is incorrect to assert that you own one-third of that company; it is instead correct to state that you own 100% of one-third of the company's shares.Step by Step Solution
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