Why would a company issue debt (bonds) over equity (stock)?
Answers: Debt is generally cheaper to issue and has a lower capital cost than equity. IB's take a smaller bite on bond issues than on equity offerings; it's also much easier to market debt than equity (as bonds have more guarantees than stocks, which generally have almost none).
The bond market is many times larger (in asset & market value) than the stock exchanges.
Also, issuing debt is regarded as a better "signal" to investors (because it implies management's confidence in the firm) than issuing more equity. Issuing more equity can also dilute investors' original stakes and is therefore unpopular with shareholders.
On reason is that with bonds, you get paid interest. So there's no "growth" with them. If a stock grows, the company has to keep shelling out those dividends. But bondholders get paid before stock holders, even preferred stock.
Investment/Retirement Question?
I have the likelihood through work to invest in a 401b or 457 plan (this is over my retirement through the state). Should I go that route or invest my money monthly on my own through an IRA or diversified stock portfolio?Answers: Well if your employer does any type of congruent on the 403b or 457 that's a no-brainer, that's free money. Otherwise, I would just invest surrounded by a Roth IRA if you qualify or a Traditional IRA if you don't. Or whatever other investment you have a feeling comfy with.
I totally agree next to above (if your employer will match ANY of your contribution afterwards if you go another direction you are a short time ago not taking advantage of free money)
However you entail to look at a few more things before its a no brainer.
A. Does your employer enjoy a vesting period? Typically you own a 5 year vesting period next to some employers which medium if you don't plan on working for this employer for at least 5 year you could be losing money. A vesting extent means adjectives the money you put in is simply 100% your if you work for them for 5 years (or however long the vesting period is). So if you don't similar to where you work contributing beside a vesting period would any lose you money or lock you in to this commission until you are 100% vested and leave
B. What option does your employer offer for your 403b? can you with the sole purpose invest in one fund or reinvest to the companies stock (not for you since 403b is usually Gov/State/school). one core positive about investing on your own is that you enjoy the freedom to invest in what ever you want...where on earth as in a 401k or 403b you own only a few funds to select from.
C. You obligation to look at your self. I say this because profusely of people articulate they will save the money and never do, a contribution forces you to free and with miniual physical exertion. Also, do you really feel you can stuff mutual funds returns? are you that good of an investor that you can return with a better return on your spare time than people who do this every daytime for a living? (its possible, alot of people out within can beat fund manager, just requirement to honest look at your abilities/time to see if you can).
Good luck to you, all things considered if you resembling your job and you own more than 6 options for your 403b, and you are not the subsequent warren buffet then contributing to your 403b is a dutiful move.
Hi,
You got some honourable answers- if employee match, go for it, otherwise a Roth IRA sounds resembling the ticket. Now, you have to amount out what to invest in. In this flea market, even the experts are scratching their head, believe me.
Ask your question on other investment sites that are designed for your type of interrogate. Moneyrec.com is a new site since 2007 and oodles users offer great backing to other users. Be sure to be specific. Your age, financial situation, goals etc. The more info you make a contribution, the more tailored an answer will be to your needs. Moneyrec is free to users and spam free. Also, Morningstar.com have a free board for questions- but for additional info., it is remuneration.
These are the most professional sites on the web--
Good luck!
Bunny
What can I invest in to turn $12,000 into $100,000 as soon as possible ? I am open to anything.?
Answers: Go to Vegas and put it all on BLACK!
Well, the greater the risk the greater the rewards...as they say. Therefore, if you are wanting great rewards, you will need to be taking greater risks.
I would suggest Forex. But before you do, look at this sight. The guy is truly brillant, and is what got me going!
www.forex4noobs.com.
Now, there is naturally a need to focus on the fundamentals of the economies involved in the currency pairs, but this doesn't have to be hard. I saw the scene set for a nice drop in the GBP/JPY pair in December. Within a month its drop $.20, which translates into $21320, from just a 10K deposit in the account. I am anticipating the pair to continue to fall below 200; possibly to 195. If that is the case, that will bring the overall gains to about 37K.
hope this helped.
The quickest way to turn money is in a leveraged trading account. There are two kinds that are easily available to an individual in the United States: a Forex account and a Futures account. With a forex account you trade currencies. With a futures account you trade commodities.
Many people have turned as little as $5,000 into $100,000 in as little as 6 months to a year.
To open an account look for a brokerage that is licensed and registered with the National Futures Association (NFA). This ensures that they are regulated.
Some good brokerages are:
Etrade.com
mfglobal.com
OptionsXpress.com
One method of doing this is by learning the "50% retracement rule." This rule is a simple, reliable rule for entering trades. You may G00GLE this rule or read the book "The Trading Rule That Can Make you Rich" by Edward Dobson.
You are talking about more than an eightfold return. Even professional investors would have a very difficult time doing that in a short time.
In order to make very high returns, you have to take very great risks. If you don't know what you're doing, you're more likely to lose your money than mutliply it eightfold.
Your best bet is to be realistic and go for reasonably obtainable returns. The stock market has historically returned an average of 11% annually over long periods of time. Unless you really know your stuff, you'll be hard pressed to do much better.
The main advice is never to listen to promises
by Forex peddlers and other make money fast
magicians in runeye.com!
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I agree with forex right now as it does have high risk but great returns, but stay away from traders as they will eat your profits up in fees. I have been with a investment club for over a year and have not lost money with them. They are diversified as in they invest in forex, RE, and Business. Check out there website at http://www.freewebs.com/mnthighinvest Godd luck in all your investments.
Bob