Identlfy whether each scenario is a characteristic or an example of a stock or b

Question

Identlfy whether each scenario is a characteristic or an example of a stock or bond by dragging and dropping each item into the correct bin. Stocks Bonds Ivan owns a financial asset that he purchased from his local government and it matures in five years. Johnson & Johnson wants to build a new factory but does not have the cash on hand to pay for it. It chooses to finance its new factory through debt financing. Nissan wants to expand its current operations to a new country. It chooses to finance it expansion through equity financing Catherine purchased a financial asset that gives her partial ownership of a company. Check Answer Next Exi Hint

Explanation / Answer

"Ivan owns a financial asset that he purchased from his local government and it matures in five years-Bonds, since the asset has a fixed maturity.

"Nissan wants to expand..."-Stocks, as stocks are involved in equity financing.

"Johnson & Johnson..."-Bonds, as bonds are dent instruments that are used for financing.

"Catherine purchased..."-Stocks, as stocks are associated with the ownership of a company.

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