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Terms in this set (127)
Characteristics of Preferred Stock Hybrid security, stockholders have a higher claim to assets, safer investment,
generally no voting rights, may carry special voting rights under
circumstances
____ represents ownership with voting rights and Common stock
variable dividends.
coupon rate of a bond the interest rate that the bond issuer has agreed to pay the bondholder
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Governments issue bonds to Finance public projects and manage fiscal policies
Corporations issue bonds to Raise funds for operations and growth
Market Capitalization number of shares x price per share
____ stocks offer the potential for higher returns but Common
come with a greater risk.
AAA rated bonds are the ____ risky and has the lowest Least
yield
Corporate Bonds Bonds issued by companies to fund operating expenses and business
activities, typically risky, usually 6 month coupons to pay interest. If not paid at
maturity, can force bankruptcy
Two types of Public bonds Municipal (munis) and treasury
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