
Shares As An Investment?? Share Market Investors and Other Investors Please Answer!! Urgent!!?
For my maths assignment, I need to answer this question: List advantages and disadvantages of shares as an investment with respect to at least 2 other investment options. Your help would be very much appreciated. Please write a detailed overview so as to help me with my assignment. Thanks.
Comparing shares (common stocks) with corporate bonds (or bank loans): Shares give you ownership of a business entity, it’s a claim on the business’ interest after debt (bonds, loans, etc) is paid back. Corporate bonds don’t do that. Shares can be sold on stock exchanges and have more liquidity, while most debt instruments can not be traded and even if it’s tradable, it’s not as easy to find a buyer as stocks. However, holders of shares assume full risk of the business entity. If the business undergoes difficulty, and files for bankruptcy, debt holders claims their interest first, and then share holders, if there’s any interest left. The conventional thinking is that shares (stocks) are riskier than debt ( corporate bonds).
I don’t understand how is this question related to math? What level is this math assignment on?
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