Assuming you have PHP50,000 in excess funds.  In which investment vehicle will you put your hard-earned money:  (a) in the equities market to purchase an equity instruments i.e., invest in a newly-launched initial public offering (IPO) of an established Philippine company and/ or purchase existing listed shares from the Philippine stock market (Phil. Stock Exchange) or (b) in the debt market to purchase a debt instrument i.e., purchase newly issued long term 5-year fixed rate bond offering of San Miguel Brewery (as an example)?  State your answer by discussing the advantages and disadvantages of both options.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Assuming you have PHP50,000 in excess funds.  In which investment vehicle will you put your hard-earned money:  (a) in the equities market to purchase an equity instruments i.e., invest in a newly-launched initial public offering (IPO) of an established Philippine company and/ or purchase existing listed shares from the Philippine stock market (Phil. Stock Exchange) or (b) in the debt market to purchase a debt instrument i.e., purchase newly issued long term 5-year fixed rate bond offering of San Miguel Brewery (as an example)?  State your answer by discussing the advantages and disadvantages of both options.

 

 

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