Name Two Different Examples of Items That Can Be Received

question 1

Essay

Name two different examples of items that can be received (in addition to cash)in exchange for issuing stock.Describe how the value of each item affects additional paid-in capital.

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Definitions:

Expectations Theory

A theory suggesting the shapes of yield curves on government securities are determined by investors' expectations about future interest rates.

Term Structure

The relationship between the interest rates or yields of securities and their maturities, often illustrated by a yield curve.

Yield Curve

A graph showing the relationship between bond yields and maturities, often used as a predictor of economic conditions.

Junk Bonds

High-risk, high-yield bonds issued by entities considered more likely to default, offering potentially higher rewards to compensate for the increased risk.