Reply to students responce in 150 words and 1 reference
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\n-Your grandfather has great faith in bonds and has heard about some \u201chigh yield bonds\u201d that are available.\u00a0 He has asked you for your opinion.\u00a0 What advice will you give him?
\nI would instruct him to stat away from junk bonds unless he fully understood the risk associated to this type of investment.\u00a0 Junk bonds are also known as speculative grade bonds.\u00a0 These types of bonds pay higher dividends because there is no credit rating associated to the bond.\u00a0 There is a higher chance of default with junk bonds which in turn earns a higher return on investment (ROI).\u00a0 \u00a0\u00a0\u00a0
\n-Why do venture capital companies often choose preferred stock for their equity position?
\nPreferred stock has a par value and a fixed amount in dividends that must be paid before paying any common stock.\u00a0 There is no penalty for not paying preferred stocks if it keeps the company out of bankruptcy (Ehrhart, M.C., & Brigham, E.F., 2015).\u00a0 If the company liquidates for any reason, the preferred stock holders would receive payment prior to common stock holders.\u00a0 Preferred stock is more costly than common stock however, preferred stock allows for grater control with electing governing agencies who appoint mangers to grow the company.
\n-Explain how supply and demand influences the price of common stock.\u00a0
\nThe more there is of something, the less the demand will be.\u00a0 On the other hand, the less there is of something, the more valuable the product, service, or industry becomes and hence the more demand there is.\u00a0 This is the principle of supply and demand.\u00a0 If the economy continues to grow with a bullish market, the intrinsic value will start to rise.\u00a0 This in turn creates a demand for more stock.\u00a0 Investors are also conscious of interest rates rise, if rates rise, demand for shares decreases.\u00a0 This is due to the fact that funds have to be diverted for other investment opportunities. \u00a0If a particular company or industry is doing great, the demand for that particular share increases. \u00a0Demand for stock can be manipulated with the repurchasing of shares when the company decrease the amount of shares that are available to the common customer.\u00a0 When the company is in need of funds, it will sell those shares, therefore creating a decrease in cost and over saturating the market with their less than valuable shares.<\/p>\n","protected":false},"excerpt":{"rendered":"
Reply to students responce in 150 words and 1 reference \u00a0 -Your grandfather has great faith in bonds and has heard about some \u201chigh yield\u2026<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[565],"tags":[195,194,191,202,204,189,200,198,197,192,201,205,190,76,203,196,193,199],"class_list":["post-6942","post","type-post","status-publish","format-standard","hentry","category-uk","tag-buy-cause-and-effect-essay","tag-buy-compare-and-contrast-essay","tag-buy-thesis-online","tag-case-study-writing-service","tag-nursing-apa-assignment-help","tag-nursing-care-plans-editing-services","tag-nursing-case-study-in-apa-writing-services","tag-nursing-evidence-based-practice-editing-services","tag-nursing-pico-project-editing-services","tag-nursing-research-proposal-editing-services","tag-nursing-term-paper-in-apa-writing-help","tag-nursing-thesis-in-apa-writing-help","tag-pay-for-thesis","tag-research-paper-writing-service","tag-write-my-case-study","tag-write-my-nursing-apa-essay-for-me","tag-write-my-nursing-paper-for-me","tag-write-my-research-paper"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/6942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=6942"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/6942\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=6942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=6942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=6942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}