The Underlying Similarities Between Bonds And Stocks - 550 Words

The Underlying Similarities Between Bonds And Stocks (Essay Sample) Content: NameInstructorCourseDateStock vs. bondsStock and bonds signify diverse ways that a company can use to acquire cash either for development or to increase its operations. In essence, stock refers to a security that represents ownership in a company. Bonds, on the other hand, is the money a person or investor loans to a corporation borrowed for a certain duration with fixed interest rate. For instance, when a company gives out its share, it is vending a part of it in interchange of money. Bonds prices remain determined on how the ratings of an entity are. Bonds are a type of a loan; a bond holder provides a borrower with funds to invest on long term investments. Therefore, this paper will discuss in detail the underlying similarities between bonds and stocks and how they are issued as well as some of their dissimilarities.Bond and shares have some similar characteristics, for instance, both are categorized as securities. In essence, most of the bonds are more similar to stocks, and in such, they are tradeable securities. This leads to a capital market where bonds are traded in the bond market and the stocks in the stock market. However, they are quite different in a number of characteristics such as; stocks stand to be ownership incentives while bonds are basically debts. When an organisation gives out a bond, it is lending an obligation with a promise to issue interest for use of that money. Nonetheless, once an entity issues a stock, it is lending a part of it in exchange for cash.Stocks are basically shares of a distinct company that offers an ownership stake in a company (Bali 818). For example, assuming that an organization has overcome all challenges and has now become fully successful. Its vendors may, therefore, desire to increase its operations but then are incompetent in doing so merely because of the profits that are gained in that business. The owners therefore, refer to commercial marketplaces on the assistance of some monetary assist ance. One of the ways to doing this is by splitting the business to shares and sell these shares into an exposed market a method referred to as an initial public offering (Bali 818). Therefore, someone who purchases stock of a company however small is actually acquiring a share into that company that makes him or her a part owner of the company. As a result, a stock is hence a kind of an equity. On the other hand, bonds are known to be a kind of a debt. A corporation or an individual who wishes to raise money, ask for cash from the open market where later an interest is paid to the bondholders.The other similarity that could be said is that both markets are regulated by the U.S. Securities and Exchange Commission. They are however vastly different depending on investors where a separately part of a stock signifies a possession in an entity signifying that stockholders in profit and losses of a company can gain if it functions well. However, an investor runs under a certain uncertain ty if the company performs poorly or rather goes bankruptcy (Bali 819). Nevertheless, individual stocks tend to be on the riskier end in respect to their instability and at a peril where a stakeholder may possibly mislay money in a short term. Nevertheless, they tend to offer greater long terms profits and thus stocks are anticipated by investors with a longer speculation pro...

To His Coy Virgins - Literature Essay Samples

To His Coy Virgins The concept of carpe diem or â€Å"seize the day† is a popular poetic credo. Seventeenth century poets Andrew Marvell and Robert Herrick address carpe diem by admonishing young virgins against coyness and procrastination. Despite differences in device, motive, and narrative voice, Marvell’s â€Å"To His Coy Mistress† and Herrick’s â€Å"To the Virgins, To Make Much of Time† are unified by an urgent message. This message emphasizes that a young girl should utilize the gift of youth while she is still able, or she will later regret having not lived. More specifically, the virgin should not remain chaste her entire life, and should relinquish her virginity while young so she does not cheat herself out of the pleasures of youth. The two poems share much imagery. Both poets personify the sun and time as looming reminders of mortality. Marvell sees the sun as life’s adversary, and asks his mistress to challenge fleeting t ime by living deliberately with him, â€Å"Thus, though we cannot make our sun/Stand still, yet we will make him run † (45-46). Herrick takes a more passive approach to the sun, seeing it as a mark of time’s inevitable passage, â€Å"The glorious lamp of heaven, the sun/The higher he’s a getting/The sooner will his race be run/And nearer he’s to setting† (5-8). Herrick and Marvell also approach the entity of time differently. In the first half of â€Å"To His Coy Mistress† the speaker makes glorious promises on the hypothetical basis of having an eternity to fulfill them: â€Å"Had we but world enough and time/This coyness, Lady, were no crime† (1-2). However, after the speaker records his extensive list of noble intentions, he claims it is impossible to act upon them because â€Å"†¦at my back I always hear/Time’s winged chariot hurrying near/And yonder all before us lie/Deserts of vast eternity† (21-24). In c ontrast, Herrick does not use the image of time as a manipulating force. He actually encourages the virgins to live as they see fit, as long as they acknowledge the existence of time and intend to utilize it, â€Å"Gather ye rosebuds while ye may/Old Time is still a flying† (1-2). It is apparent that Marvell takes a negative, urgent approach to these images while Herrick is calm, passive and somewhat didactic. The speakers in these two poems have different, but not necessarily opposing, agendas. Herrick seems to take the role of a sage, giving advice to a younger generation of women, not one particular girl. The speaker in Marvell’s poem is specifically addressing his mistress, with the ulterior motive of winning her virginity. His poetry, filled with promises and pleas, has the blatant intent of seduction. In the latter half of â€Å"To His Coy Mistress,† the speaker invokes grotesque images of the grave, worms, and dust to as a desperate attempt to i ntimidate his obstinate mistress into acquiescence, â€Å"†¦then worms shall try/That long preserved virginity/And your quaint honor turn to dust, and into ashes all my lust† (27-30). In addition to extensive flattery, Marvell resorts to playing on his mistress’ fear of death in order to seduce her. His message: The only fate worse than death is dying a virgin. He ignores all repercussions of immediate physical consummation, and only acknowledges the backlash of never acting upon sexual desire, which is an odd inversion of conventional morality. Interestingly enough, Marvell does not once mention the prospect of marriage in this poem. The reader is left wondering how noble his intent truly is. From a philosophical standpoint, one could say that Marvell is â€Å"seizing the day,† living in the immediate present, and viewing each moment as an isolated chance for happiness with no bearing on the future. However, It is clear that the notion of carpe diem is merely a cheap, self-serving concept for this speaker, who could possibly be a mindless hedonist. Herrick also warns virgins against coyness, but to his merit, the last stanza recommends the virgins to â€Å"†¦while ye may, go marry† (14). Both poets use metaphors and a constant, predictable rhyme scheme. Herrick’s metaphors, such as the gathering of rosebuds, are very conventional, yet effective. Interestingly, he does not use simile. The effect is that the speaker appears less seductive or flattering than Marvells. Rather, Herricks tone is more didactic. Marvell’s language is overflowing with excessive, hyperbolic metaphor and simile. The majority of his images are quite grandiose, such as â€Å"My vegetable love should grow/Vaster than empires and more slow† (11-12). Marvell is normally classified as a metaphysical poet, and many of his far-fetched metaphors, like â€Å"vegetable love,† are characteristic of this movement. For r hyme scheme, Herrick’s uses abab, while Marvell uses the simple rhyming couplet, aabb, etc. Yet, unlike the near-perfect rhyme in â€Å"To the Virgins†¦Ã¢â‚¬  there are two couplets in â€Å"To His Coy Mistress† where slant rhyme occurs. Lines 23 and 24 rhyme lie† and â€Å"eternity; lines 27 and 28 couple try† and â€Å"virginity. Both To His Coy Mistress and To the Virgins deal with the progression of carpe diem as an ideal for a young woman who still possesses her virginity. The former poems approach is seductive and self-interested, and the latter is more didactic. Yet both end with the implicit message of â€Å"seize the day, or you shall wither away!† Robert Herrick’s closing lines, â€Å"For having lost but once your prime/You may forever tarry† (15-16) express this sentiment perfectly, implying that excessive coyness will result in a limbo, and a loss of life and love.