3/22/17
- Bonds are loans, stocks you own
- Bonds are loans or IOUs that represent debt that the government or a corporation must repay to an investor. The bondholder has no ownership of the company.
- If a corporation issues and then sells a bond, it is a liability for the corporation. It is an asset for the buyer.
- If nominal interest decreases, the value of bond increases
- If the nominal interest increases, the value of bond decreases
- Stock owners can earn a profit in two ways:
- Dividends- are portions of the corporation’s profits, are paid out to stockholders
- Capital gain – is earned when a stockholder sells stock for more than they paid. Capital loss is when a stockholder sells a stock for lower than they paid.
- Demand for money has an inverse relationship between nominal interest rates and the quantity of money demanded.
- The money demand curve slopes downward and to the right because higher interest rates increase the opportunity cost of holding money, thus leading public to reduce the quantity of money it demands.
I think that your blog is quite informative and insightful because of the many videos you have uploaded with each post. The videos are helpful in that they illustrate the topics well and provide different perspectives of the topics. The only thing I would recommend would be to maybe title each post with the topic like
ReplyDelete"03/22/17 Bonds vs Stocks" Overall, your blog is clear and organized well, making it easy to understand.