Question: write a 500-word memo that identifies and describes each type of financial instrument discussed in this unit's readings: equity (stocks), debt (bonds), and mutual funds.

write a 500-word memo that identifies and describes each type of financial instrument discussed in this unit's readings: equity (stocks), debt (bonds), and mutual funds. Your definitions should be in your own words. When you compare and contrast the instruments, make sure you

  • discuss specific ways in which the instruments differ
  • discuss how those differences affect the riskiness of the various investments
  • explain how the differences affect the return required by investors
  • explain why corporations use both debt and equity to finance their investment needs rather than relying strictly on one or the other

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