Principle of banking and finance Assignment Example | Topics and Well Written Essays - 500 words

Principle of banking and finance - fitting ExampleHowever, it is notable that the dividend is paid only if the company makes a certain amount of profit, Finn (1999).On the otherwise hand, a corporate bond is a long-term debts owed to individuals. In this case, the corporate that issues the bond enters into a draw with the person that purchases the bond. In the contract, the company promises to pay the total amount of debt after a prescribed period. In addition, to this, the corporate gives interest after every 6 months on each bond and in congruity with the term of the bond contract.Stock market plays a pivotal role in the economy as it is a key to the growth of commerce and industry and as such affects the economy to a jumbo extent. The government can watch on the happenings of various sectors of the economy by a mare port at the trends in the take market. Equally, individuals who want to invest can compare the figures given in the caudex market so as to make important inves tment decision, Elmuti (2003).For the corporate, they can either take a credit facility when they need to finance a project or float some of its stock in the stock market. As such, investors are able to buy the stock and thereby allowing the bank to impose the required capital, Fang