A person who prefers being a creditor to being an owner would invest i

QUESTION

A person who prefers being a creditor to being an owner would invest in
A. common stock. C. bonds.
B. preferred stock. D. IPO.
You can invest in Bonds or IPO. If the company raises money through bonds then it has to offer a fixed coupon payment to the bond investor for a fixed maturity period. At the end the bond issuer has to pay the maturity and the principal. so you are not tied to the bondholders If the company has never issued an equity then its known as IPO. Even in an IPO the company¦

can take the private IPO route and sell the bonds to a few stakeholders. As new company do not have enough subscribers so only a few people would be interested. Large companies like IKEA, Dominos, Hallmarks are held through private IPO.

ANSWER:

CLICK REQUEST FOR  AN EXPERT SOLUTION