Compare and contrast lending and ownership investments
What will be an ideal response?
Answer: You actually lend someone your money in a lending investment, such as a saving account or a bond. The original investment or principal does not grow in a lending investment. It returns interest annually and the original investment when retiring it. Note: Bonds appreciate or depreciate in value based on changes in interest rates. Investing in bonds can lead to capital gain (loss) much the same as equities if timed properly.
An ownership investment, such as stocks or income-producing real estate, provides an annual return plus the potential for appreciation or growth in value of the original principal.
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Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________
A) attitude B) buyer-readiness stage C) loyalty status D) user status E) benefits
A decrease in Accrued Interest Payable is deducted from Interest Expense to compute the cash paid for interest expense
Indicate whether the statement is true or false
The following data were taken from the financial statements of Howard Corporation for the year ended December 31 . 2014: Net sales ............................................... $120,000 Net income .............................................. 30,000 Total assets, January 1 . 2014 ........................... 400,000 Total assets, December 31 . 2014 ......................... 600,000 What was
Howard's rate of return on assets for 2014? a. 5 percent b. 6 percent c. 20 percent d. 24 percent
Which of the following is an example of a variable that fosters innovation?
A. low job security B. organic structure C. scarce resources D. maximum time pressure