When you buy a share you become a part owner of that company. In other words, you are owner to the extent of No of shares you have with you.
A debenture is the amount of loan advanced to a company.
Bond is something like a certificate of deposit.
Asset: there are different types of assets. A share is a financial asset.
Brokerage: the amount paid towards buying or selling of shares. In other words, the middle who deals with shares.
Liabilities: are amount borrowed from banks and others.
Analyst
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2006-10-09 23:51:14
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answer #2
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answered by Anonymous
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what exactly is a stock, anyway? When you buy stock in a company, you are literally purchasing an ownership stake in that company. Even if you own just one share of a company's stock you have a legitimate claim (albeit a very small one) on every asset and every dollar that company earns. Of course, companies sell stock to raise money, not because they want 100,000 new executive VPs.
Stocks can generally be divided up and classified according to market capitalization (size), style and sector. The market capitalization of a company is how much investors think the entire company is worth, based on the current share price times the total number of shares outstanding. In other words, if a company is trading 50 million shares of stock at $10 per share, that company is considered to be worth $500 million (50,000,000 x $10 = $500 million).
Debentures
Unsecured debt backed only by the integrity of the borrower, not by collateral, and documented by an agreement called an indenture. One example is an unsecured bond.
Bond
A debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing. The Federal government, states, cities, corporations, and many other types of institutions sell bonds. Generally, a bond is a promise to repay the principal along with interest (coupons) on a specified date (maturity). Some bonds do not pay interest, but all bonds require a repayment of principal. When an investor buys a bond, he/she becomes a creditor of the issuer. However, the buyer does not gain any kind of ownership rights to the issuer, unlike in the case of equities. On the hand, a bond holder has a greater claim on an issuer's income than a shareholder in the case of financial distress (this is true for all creditors). Bonds are often divided into different categories based on tax status, credit quality, issuer type, maturity and secured/unsecured (and there are several other ways to classify bonds as well). U.S. Treasury bonds are generally considered the safest unsecured bonds, since the possibility of the Treasury defaulting on payments is almost zero. The yield from a bond is made up of three components: coupon interest, capital gains and interest on interest (if a bond pays no coupon interest, the only yield will be capital gains). A bond might be sold at above or below par (the amount paid out at maturity), but the market price will approach par value as the bond approaches maturity. A riskier bond has to provide a higher payout to compensate for that additional risk. Some bonds are tax-exempt, and these are typically issued by municipal, county or state governments, whose interest payments are not subject to federal income tax, and sometimes also state or local income tax.
Asset
Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property. On a balance sheet, assets are equal to the sum of liabilities, common stock, preferred stock, and retained earnings.
From an accounting perspective, assets are divided into the following categories: current assets (cash and other liquid items), long-term assets (real estate, plant, equipment), prepaid and deferred assets (expenditures for future costs such as insurance, rent, interest), and intangible assets (trademarks, patents, copyrights, goodwill).
Brokerage
Used interchangeably with broker when referring to a firm rather than an individual. also called brokerage house or brokerage firm.
2006-10-11 03:30:23
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answer #3
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answered by fortunemail 1
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