Finance Basics 1: Stocks, bonds and dividends

SheetDrill Finance Finance Basics 1 · Stocks, bonds and dividends

Basics · 1

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Finance Basics 1 done.

You know what a stock and a bond are, how coupons and dividends work, who's paid first in a bankruptcy, and why bond prices move with interest rates. Next: compound interest.

Next: compound interest →

What you're learning

A stock (share) is a piece of ownership in a company. A bond is a loan to a company or government that pays fixed interest (the coupon) and returns its face value at maturity.

Dividends are profits a company chooses to pay its shareholders. Bond interest is a contract; dividends are a decision, and they can be cut.

Apple's dividend is from its fiscal 2022 10-K (SEC accession 0000320193-22-000108); the share price is the Sep 23, 2022 close. Educational content, not investment advice.