Description
Understanding the differences between the stock market and the bond market is essential to managing corporations and investing. In your discussion, answer the following questions:
- Describe the products and the functionality of the stock market.
- Describe the products and the functionality of the bond market.
- Describe how an individual company can use the stock market to generate initial funding as well as subsequent funding.
- Describe how an individual company can use the bond market to generate funding.
- Describe which is more expensive for a company to generate funds—the stock market or the bond market.
Explanation & Answer
Attached.
OUTLINE
INTRODUCTION
BODY
CONCLUSION
REFERENCE
ECONOMICS
1
Investment
Name
Instructor
Institutional Affiliation
Date
ECONOMICS
2
INVESTMENT
Answer 1
The stock market is the aggregation of buyers and sellers of shares where traders
involved have the ownership of a business. This may in most cases include publicly or privately
traded securities. Products traded include equities, indices, mutual funds, and exchange traded
funds (Bodie, 2013). The stock market is a reliable tool to measure the economic condition of a
country, it also helps in valuing securities in relations to demand...