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Vanilla Bonds and Vanilla Stocks
Write 400â600 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Each bullet is its own paragraph and response
Understanding the differences between the stock market and the bond market is essential to managing corporations and investing. In your discussion, answer the following questions:
- Describe the products and the functionality of the stock market.
- Describe the products and the functionality of the bond market.
- Describe how an individual company can use the stock market to generate initial funding as well as subsequent funding.
- Describe how an individual company can use the bond market to generate funding.
- Describe which is more expensive for a company to generate fundsâthe stock market or the bond market.