A corporation may raise funds by offering shares of stocks to investors.  Express your idea or understanding of this process.

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: Generally, an initial public offering is:   Group of answer choices   an offer to potential…

A: Several statements have been given as an explanation for general meaning of an initial public…

Q: corporation,dividend,limited liability,over-the counter market,stock exchange and stock market index

A: In finance we often hear the words corporation, dividends, limited liability etc. These are all…

Q: How do bonds provide financing to corporations for their capital projects? What are the key…

A: A bond is a good source of finance. Payment of coupon at a regular interval help in tax savings.

Q: Should the qualifications of the board of directors play a role in your decision whether to buy the…

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: What are municipal bonds? What characteristics makes them especially attractive to high-income…

A: Bonds are debt instruments issued by entities. Different kinds of entities can issue bonds and the…

Q: Marketable securities include investments in bonds and in the capital stocks of publicly traded…

A: Marketable securities are shown as current assets in the balance sheet of the company and cash flow…

Q: Does a company benefit when an owner of the company's stock sells these shares to another…

A: The dynamics of stock ownership within a company play a pivotal role in its financial landscape.…

Q: 15) When a corporation sells shares directly, it pays a brokerage house to issue the shares. O True…

A: Typically, when a corporation sells shares directly to investors, it is referred to as a "direct…

Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…

A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…

Q: What are the tools and measures that objectively measure the level of emotions among individual…

A: Individual investors are usually those who have a limited amount of investment. These investors…

Q: Which is correct about debt securities? a. Debt securities make the holders owners and give them the…

A: a and c are not correct because debt securities holders are NOT the owners. They are lenders to the…

Q: The preemptive right allows common stockholders to: Group of answer choices vote for the board of…

A: Its purpose is to maintain the proportionate ownership of existing stockholders when new shares are…

Q: Investors who are looking for capital preservation tend to invest in stocks and stock mutual funds…

A: There are various alternative to invest such as stocks, bonds, mutual funds, derivative instruments,…

Q: Discuss risks and returns characteristics of investing in ordinary shares and corporate bonds from…

A: A bond is a financial instrument that represents a loan made by an investor to a borrower (usually a…

Q: Describe what is IPO and what is involved in the IPO process. Do you think that it is better to buy…

A: IPO is initial public offering that means the company in this shares of company are sold to common…

Q: Why would a corporation elect to raise funds via a securitization rather than a corporate bond?

A: An indirect claim security whose value (in whole or in part) is derived from the market price of the…

Q: You have some funds that you would like to invest. Do some internet research to find two publicly…

A: Investment decision:Investment decision means making a decision on which investment should be…

Q: Discuss the reason(s) behind the conflict of interest between corporate stockholders and…

A: Corporate Stockholders: A stockholder is the owner of the shares purchased of a company. There are…

Q: What do you call those investors who buy shares of stocks of a company and become legal part owner…

A: The company includes owner and creditor during the year. Owners are the investors who invest into…

Q: Can an individual enter into a joint venture with a corporation? how do you account for that?

A: Joint venture can be defined as the business entity that is created by two or more parties that is…

Q: Private placement is the: a. Sale of securities indirectly to a select group of investors. b. Sale…

A: Equity financing is referred as the fund raising for a company by selling its shares. The person who…

Q: Explain the Steps in the Creation of a Corporation?

A: Corporation: It refers to a business form which is established as a separate legal entity.…

Q: Write a note on Three primary means companies use to offer securities to the general public?

A: Securities are the tradeable financial instruments that are bought and sold in the financial markets…

Q: Stockholders elect a group of members from among them to manage the affairs of the Corporation, this…

A: The board of directors are the group of individuals whose responsiblity is  manage the affair of the…