Bonds and stocks {security, money}| trade in stock or bond markets. Buying and selling establishes business or corporation actual and perceived value. Securities have probabilities {risk, loss} that they will have no dividend or interest or that they will lose market value.
Businesses, including corporations, issue indebtedness certificates {bond, finance}| to obtain money, without ownership rights. Bondholders loan money to businesses. Business property is security lien for bond-debt principal and interest. Preferred stocks are also liens against company. Business property value minus outstanding-bond value is business net value.
Securities can increase in market value {capital gain}|. Securities can lose market value {capital loss}.
Corporations can emphasize rapid capital expansion {growth stock}| or emphasize dividends.
Yield can divide into market value {price-earnings ratio}| to establish security value.
Bonds have interest rates {return}.
Stocks can have dividends {yield from stock}|.
Stocks and bonds have value {market value}| determined in the market.
Stocks and bonds have specified value {par value}| at issue.
6-Economics-Microeconomics-Finance
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Date Modified: 2022.0225