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Match the term with the appropriate phrase. You may use each answer once, more than once or not at all.
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Bonds
Bonds are fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.
Common Shares
Equity securities that represent ownership in a corporation, giving holders voting rights and a share of the company's profits through dividends.
Preferred Shares
Preferred shares are a class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically entitling shareholders to fixed dividends ahead of common stockholders.
Cost of Equity
The anticipated reward that a corporation offers to its stockholders in exchange for the risk they take by investing their capital.
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