FINANCIAL MARKETING

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A security is a claim on the issuer’s future income or assets (any financial claim or piece of property that is subject to ownership). A bond is a debt security that promises to make payments perio... dically for a specified period of time. An interest rate is the cost of borrowing or the price paid for the rental of funds. High interest rates can stimulate you to save more and spend (borrow) less. A common stock represents a share (aandeel) of ownership in a corporation. It is a security that is a claim on the earnings and assets of the corporation. Issuing stock and selling it to the public is a way for corporations to raise funds to finance their activities. The stock market is also an important factor in business investment decisions, because the price of shares affects the amount of funds that can be raised by selling newly issues stock to finance investment spending. A higher price for a firm’s shares means that it can raise a larger amount of funds, which can be used to buy production facilities and equipment. [Show More]

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