Distinction between debt and equity instruments, International Economics

Q. Why is it useful to make a distinction between debt and equity instruments?

Answer: Debt instruments such as bank deposits and bonds are repaid regardless of economic circumstances. Equity instruments for example a share of stock have a payoff that is linked to economic performances. Though remember the possibility of bankruptcy and the real return which is subject to domestic currency fluctuations.

Posted Date: 6/29/2013 3:25:42 AM | Location : United States

Related Discussions:- Distinction between debt and equity instruments, Assignment Help, Ask Question on Distinction between debt and equity instruments, Get Answer, Expert's Help, Distinction between debt and equity instruments Discussions

Write discussion on Distinction between debt and equity instruments
Your posts are moderated
Related Questions
Q. How can international trade in assets make both countries better off? Answer: By permitting them to reduce the riskiness of the return on their wealth and by allowin


who looses from tarrif and quota?

The Republic of Ireland has had colossal economic problems for many years. On the other hand, in the last two decade, the nation has experienced a thriving economy and has becom

Q. It is argued that the United States could be foolish to maintain a free-trade stance in a world in which all other countries exploit prisoner or child labor, or are protectioni

Q. The figure below shows the demand and cost functions facing a Brazilian Steel producing monopolist. If it were unable to export, and was constrained by its domestic market, wh

Q. Economic theory in general and trade theory in particular are replete with equivalencies. For illustration, it is argued that for any specific tariff one can search an equival

Q. Several argue that tariffs always hurt the imposing country's economic welfare, and are typically designed to shift resources from one part to another, protected or preferred o