Summary of fixed income securities Essay Example | Topics and Well Written Essays - 1250 words

Summary of fixed income securities - Essay Example Debt securities have two essential components namely interest and principle. Fixed income securities which fall in the category of debt includes bonds, mortgage-backed securities, asset-backed securities and bank loans. Preferred stock obligations can be defined as the stock in which the investors gain ownership interests in an organization. Fixed dividends are paid to the stock holders out of the profits which are earned by the company. Preferred stock holders are different from the common stock holders as they do not have voting rights. Preferred stock holders only can realize fixed dividends at periodical intervals. However, preference stock holders are given more priority when it comes to payment of dividends as compared to common stock holders. If a company becomes bankrupt, the obligations to preference stock holders are cleared off first. Considering such aspects associated with preferred stock, they are termed as form of equity having characteristic features which are similar to bonds (Barnhill Jr and Maxwell 347). Treasury bonds- They are also referred to as government bonds as the federal government of a nation issues such bonds. The government is expected not to default the payments associated with such bonds. Hence, the risks associated with such bonds are perceived to be low. However, since the price of such bonds may fall if the rate of interest rises, they are not completely riskless. Corporate bonds- Such bonds are issued by business organizations. Unlike government bonds, corporate bonds are exposed to high default risks. If the issuing company does not earn adequate profits or is suffering huge losses, it may not be able to make timely payments to the bondholders. The default risks which are associated with the bonds may range on the basis of the characteristics of the company and the terms of the bond. Such default risks are

Love - How Information Technology can enhance a business Essay

Love - How Information Technology can enhance a business - Essay Example Digital score keeper will improve the service delivery by reducing the time wasted in manual score tallying as well as reducing score disputes between putt-putt groups. Online advertisements like use of social media and websites will enable the company to market its new services and improve the customer care services. Huge screens for indoor games will add variety to the services offered while digital boards on golf course holes will advertise other available services. The use of information technology and modern communication systems will enhance the operations and competitiveness of the business (Allen, Semenik & O’Guinn, 2012). Modern information technology developments have been used in production, provision of services and communication with customers and suppliers (Allen, Semenik & O’Guinn, 2012). Information technology offers numerous efficient, cheap and faster channels of communication like the e-mails, instant messages, and short messaging system servers. Information technologies like business software systems have been used by the management in decision making since they have the capacity to capture, store, process and retrieve information as per the requirements of the user (Allen, Semenik & O’Guinn, 2012). Information technologies like electronic commerce have enabled businesses to trade in the global markets without having physical presence in those markets. E-commerce offers 24 hours business trading activity he nce customers can shop from any location of the world and at their convenience (Allen, Semenik & O’Guinn, 2012). Information technology has enabled businesses to attract and retain customers. Through the use of websites, social applications sites and messaging systems, many businesses have overcome the location barrier in their marketing efforts hence increasing the market size. Information technology has enabled businesses to conduct market intelligence on the changing customer needs. Information technology facilities the