Question

What is stock? What is a bond? How are they different? How are they similar? Define...

What is stock? What is a bond? How are they different? How are they similar?

Define private saving, public saving, national saving, and investment. How are they related?

Homework Answers

Answer #1

STOCK

The ownership certificates of a firm are generally referred to stock. Preferred and common are the two different types of stock. Stock helps a firm to enhance the initiatives of a company. Investors have positive gain when the stock have value more than they are paid to buy the stock. Investors mostly prefer stable companies to ensure their stability of profits.

BOIND

Bonds are issued by firms, organizations and government to raise money. The issuer receives loan through bond. The value of bonds keep on changing and it makes the investors attraction in bonds.

DIFFERNCE

The major difference between bonds and stock is that the bonds don’t have any ownership rights. Whereas the stock has the right of ownership. It means that for a bo9nd buyer the developments of the company don’t matters but it matters for a stock buyer. Bond shows debt of a firm and stock shows the ownership. Bond holders have no votes in the critical decision taken by the company. But stock holders have the power to vote. Dividend is the benefit received by the stock holder where as the interest are are the benefit garneted to bond holders.

SIMILARITIES

While looking into the similarities one off the major similarity is that both the bonds and stock are sold to the investors in order to raise fund for firm or government etc. Both are financial securities and it is used by the firm to raise funds in the case of necessities. The amount received by the firm from both bond holders and stock holders are repayable in the future.

PRIVATE SAVING

Private saving refers to the sum total of saving by households and the non financial and financial corporation in private sector. It is the amount which is kept by the households as savings after meeting the consumption expenditure and tax expenses.

PUBLIC SAVING

The term public savings simply means budget surplus. It is calculated by subtracting government expenditure on goods and services and transfers from government revenue through taxes. The sum total off private and public saving is thee investment in the economy.

NATIOANL SAVING

National savings refers to the total of public as well as private saving. It is the rate which is saved by reducing the spending in an economy. It indicates the health of a nation thou8ggh it depicts the savings off the nation. The savings of economy later leads to investments.

RELATION BETWEEN PUBLIC NATIONAL AND PRIVATEE SAVING

The private public and national savings are inter related. The total of private as well as public saving is the national saving. All these savings will boost the economic growth of a nation. A the individual savings and government savings increase the savings of the nation also increase. Individual savings is the amount kept by individual without spending and public saving in made by government by reducing expenses. Both the savvi9ngs are essential for increasing the standard of living of individual in a country.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How is the fixed payment loan similar to coupon bond? How is it different?
How is the fixed payment loan similar to coupon bond? How is it different?
The government raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what...
The government raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall? By what amounts? a. Public saving b. Private saving c. National saving d. Investment
Consider an economy described by the following equations: Y=C+I+G+NX, Y=8,000 G=2,500 T=2,000 C=500 + 0.75(Y−T) I=900−50r...
Consider an economy described by the following equations: Y=C+I+G+NX, Y=8,000 G=2,500 T=2,000 C=500 + 0.75(Y−T) I=900−50r NX=1,500−250ϵ r=r∗=8. a. In this economy, solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate. b. Suppose now that G is cut to 2,000. Solve for private saving, public saving, national saving, investment, the trade balance, and the equilibrium exchange rate. Explain what you find. c. Now suppose that the world interest rate falls from 8...
A. Define a (i) private good; (ii) public good; and (iii) common resource. B. What is...
A. Define a (i) private good; (ii) public good; and (iii) common resource. B. What is a “free rider problem,” and what challenge does it pose for the private production of public goods and services? C. How is the demand for a public good different from the demand for a private good? D. Outline the role government plays in the provision of public goods. Please use text to explain.
Equilibrium Values and Saving Assume that GDP (Y) is 5,000. Consumption (C) is given by the...
Equilibrium Values and Saving Assume that GDP (Y) is 5,000. Consumption (C) is given by the equation C = 1,000 + 0.3(Y – T). Investment (I) is given by the equation I = 1,500 – 50r, where r is the real interest rate in percent. Taxes (T) are 1,000. Government spending (G) is 1,500. What are the equilibrium values of C, I, and r? What are the values of private saving, public saving, and national saving? Now assume there is...
What responsibility do you have to the regional, national, or global level (how are they similar...
What responsibility do you have to the regional, national, or global level (how are they similar and different)
1; the government increases its spending by $1000 billion. if the marginal propensity to save is...
1; the government increases its spending by $1000 billion. if the marginal propensity to save is 0.2, what happens to the following: do they rise or fall and  by what amount a public saving b private saving c national saving d investment e interest rate  
4. How are private communities such as hotels and condominiums similar to and how are they...
4. How are private communities such as hotels and condominiums similar to and how are they different from, municipal governments?
How are free-fall and parabolic motion similar? How are they different? In what circumstances is it...
How are free-fall and parabolic motion similar? How are they different? In what circumstances is it appropriate to use the range equation?
How are the MSISDN and the MSRN different? How are they similar?
How are the MSISDN and the MSRN different? How are they similar?