BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Some corporations issue both common stock and preferred stock. However, most corporations issue only common stock. In other words, it is necessary that a business corporation issue common stock, but it is optional whether the corporation will decide to also issue preferred stock.

Detailed explanation-2: -A bond is a security that represents a debt owed by the corporation to the bondholder, but does not include the ownership privileges of a stockholder. Common stock-also called common shares, capital shares, or capital stock-represents units of ownership in a corporation.

Detailed explanation-3: -The basic type of stock a company issues is referred to as common stock. There are no restrictions placed on who can buy common stock. With common stock, shareholders have an ownership interest in the company that entitles them to a portion of the earned profits.

Detailed explanation-4: -A public company can issue common stock to the shareholders of acquisition targets, which they can then sell for cash. This approach is also possible for private companies, but the recipients of those shares will have a much more difficult time selling their shares.

Detailed explanation-5: -Companies issue shares to raise money from investors who tend to invest their money. This money is then used by companies for the development and growth of their businesses.