Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Is common stocks or bonds best for a high risk firm? Why?
Expert Solution
Introduction:
Stock: When corporates trades in equity securities,
Stock market is the place where the investors buy and sell them equity share inorder to gain profit and create assets.
Bond: Bond is a debt security issued by corporate or government.
Bond market is a place where investors buy and sell the debt security issued by the corporates and government with definite returns.
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