13 Sep 2022


Challenge: Stocks and Bonds Memo

Format: APA

Academic level: College

Paper type: Essay (Any Type)

Words: 270

Pages: 1

Downloads: 0

Stock investment means that one owns a certain percentage of the equity of the company while bond investment implies that the person is lending to the particular company money that is repaid with interest upon maturity. In stock investment, when dividends are released to individuals with shares in the given company, one benefits as well. When the company makes losses, the person in question also makes losses. Bonds, on the other hand, have a fixed interest rate agreed to be paid to the investor upon maturity.

Valuation is the process or the steps that are involved in the calculation of the current market value of an asset owned by a given company. A company's security, as well as intangible assets, can be used in the above process.

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay

Coca-Cola stock prices show a fluctuation trend since 2014 to date. Within the past year, the highest rate has been $48.62 and the lowest price $41.45. Regardless of the seemingly high fluctuation, there has been a small margin of $0.1 between today’s stock opening and closing price. The above is a 0.28% increase. With a volume of 10,664,380 shares, the market capitalization stands at $183.49B.

Given the nature of bonds where the returns are fixed and that of the stock which the returns fluctuate depending on the company’s undertakings, the best investment, especially for an entrepreneur who is a risk taker is the stock investment. This is because, with long-term knowledge and experience in analyzing the stock market, it is possible to know market trends and the best time to invest as well as withdraw after making the target profits. Bond investment is not the best because even though there are fewer volatility risks, it is possible to lose all of one’s investment when a company goes bankrupt, unlike in stock investment where one can sell their shares upon perceiving such a threat.

Cite this page

Select style:


StudyBounty. (2023, September 15). Challenge: Stocks and Bonds Memo.


Related essays

We post free essay examples for college on a regular basis. Stay in the know!

Texas Roadhouse: The Best Steakhouse in Town

Running Head: TEXAS ROADHOUSE 1 Texas Roadhouse Prospective analysis is often used to determine specific challenges within systems used in operating different organizations. Thereafter, the leadership of that...

Words: 282

Pages: 1

Views: 93

The Benefits of an Accounting Analysis Strategy

Running head: AT & T FINANCE ANALLYSIS 1 AT & T Financial Analysis Accounting Analysis strategy and Disclosure Quality Accounting strategy is brought about by management flexibility where they can use...

Words: 1458

Pages: 6

Views: 81

Employee Benefits: Fringe Benefits

_De Minimis Fringe Benefits _ _Why are De Minimis Fringe Benefits excluded under Internal Revenue Code section 132(a)(4)? _ De minimis fringe benefits are excluded under Internal Revenue Code section 132(a)(4)...

Words: 1748

Pages: 8

Views: 196

Standard Costs and Variance Analysis

As the business firms embark on production, the stakeholders have to plan the cost of offering the services sufficiently. Therefore, firms have to come up with a standard cost and cumulatively a budget, which they...

Words: 1103

Pages: 4

Views: 179

The Best Boat Marinas in the United Kingdom

I. Analyzing Information Needs The types of information that Molly Mackenzie Boat Marina requires in its business operations and decision making include basic customer information, information about the rates,...

Words: 627

Pages: 4

Views: 97

Spies v. United States: The Supreme Court's Landmark Ruling on Espionage

This is a case which dealt with the issue of income tax evasion. The case determined that for income tax evasion to be found to have transpired, one must willfully disregard their duty to pay tax and engage in ways...

Words: 277

Pages: 1

Views: 120


Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.