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Stocks and Bonds

By: Rebecca Caballero, Jeremiah Alcala, & Susan Cortez

Introduction to stocks and bonds

Understanding Company Statements and Capital Structure

Bonds

Corporate Bankruptcy

  • A bond is a loan.
  • Assets = liabilities + equity

  • We need to put assets on one side and L + E to find the outcome.

The company stops all operations and goes completely out of businesses !!

Types of Bonds

Basic Capital Structure & Gross and Operating Profit

Basic Shorting

  • Pure Discount or Zero-Coupon Bonds
  • What is shorting?
  • Difference between revenue and cost
  • How can shorting be risky?
  • Coupon Bonds
  • Firm Finance by using different sources of funds
  • Why is shorting effective?
  • Perpetual Bonds

Bonds vs Stocks

Market Capitalization the value of assets

Bond Prices and Interest Rates

Inverse Relationship

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