financial markets and monetary policy

Question 1

debt finance

Answer 1

borrowing money - requires paying interest on loans and may also need security

Question 2

equity finance

Answer 2

finance from shareholders through the issue of new shares/stock which carry voting rights

Question 3

debt

Answer 3

represents borrowing
periodic interest payments
bondholders are creditors with a claim on the issuers assets

Question 4

equity

Answer 4

represents ownership in a business or asset
shareholders or owners who have a residual claim on the assets and earnings of a company
equity securities include common and preferred stocks

Question 5

bonds

Answer 5

giving a company money, allowing them to expand and eventually pay the bondholder back with inetrest added