2. List 3 major differences between bonds and common equity. What makes equity more attractive to some investors and bonds attractive to others? 3. How does the highly developed financial markets aid in firm's ability to conduct business and expand? (think about IPO, secondary, selling short, buying on margin) 5. Money market instruments are very liquid types of investments. What are the advantages and disadvantages of this liquidity? 6. Jane Doe opens a brokerage account to purchase 600 shares of Qualcomm at $80 per share. She borrows $10,000 from her broker to help pay for the purchase. The interest rate on the loan is 6%. What is the margin she purchases the stock? If the price falls to $70 per share, what is the remaining margin? If the maintenance margin is 30%, will she receive a margin call