Compare and contrast the stock market from bond market. Stock Market Bond Market

Q: Bond ratings primarily reflect which of the following? Reinvestment risk, Default risk , Interest…

A: Bond ratings are an important aspect of the bond. It shows the credibility level of the bond issuer.

Q: Define the term Liabilities and Stockholders' Equity?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Financial Market for previously issued securities are bought sold in: a. Secondary market b. Primary…

A: Capital market is the market, where funds required for long term investment will be bought from the…

Q: Accounting type Question: Securities premium reserve account is shown on the liabilities side in the…

A: Securities premium reserve is the excessive amount charged with the nominal value of any share. As…

Q: The relationship between bond prices and the interest rate bonds pay: Seleccione una: a. is Positive…

A: Companies issue bonds in order to meet their requirements of funds. Companies pay a fixed rate of…

Q: ted at on the financial sta

A: Earning per share refers to the concept of computing the per-share profit gained by a company on…

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: Define Trading securities.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Describe the book value method when converting from bonds to stocks.

A: To increase the marketability of bond issue, a company may include a convertibility feature in the…

Q: Define coupon and market/effective interest rates as they determine bond pricing at par, premium, or…

A: Coupon: Coupon is the annual or semiannual payment will be made by the issuer of the bond to its…

Q: Describe the accounting for investments in equity securities.

A: Equity securities: The financial instruments that claim ownership in the stock of Investee Company,…

Q: How are bonds reported when classified as trading securities?

A: Trading securities are those securities which are purchased or sold for trading purpose i.e. to make…

Q: Explain accounting for investments in equity securities.

A: An equity security is an investment in stock issued by another company. The accounting for an…

Q: Difference between bonds and stock.

A: Stocks: Stocks are the financial instrument that carries ownership interest, issued by the company…

Q: What are the pros and cons of dealer markets (e.g. - treasury bond markets) as compared to trading…

A: The financial market known as a "dealer market" is where dealers list the prices at which they would…

Q: Explain accounting for investment in bonds.

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Describe the features of a common stock and explain what you understand by primary and secondary…

A: Common stock is the shares issued by the company to its shareholders. Common shareholders enjoy…

Q: Define the term treasury stock.

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.