Become a proponent for the argument below. Explain why you agree in 250 words., ,,Question 1: IBM stock sells at about $195 per share and pays an annual dividend of $3.40. Would you rather buy the stock or the bonds of IBM? Give some reasons., ,Do you agree with this statement?, ,Annual Dividend Yield= Annual Dividend / Price Per Share = ,$3.40 / $195 per share = 0.0174 or 1.74%, ,I personally would prefer to buy IBM stock rather than invest in bonds. I feel that buying stock can sometimes be a risk depending on the company and the economic conditions that could affect the stock price, but on the other hand, a wise investment could potentially produce a larger gain., The flexibility of buying and selling stock at my discretion is also a large factor in my decision, where purchasing bonds would tie up my money for a specific time period (i.e, 3 years)., ,On August 2, 2010, IBMs stock closed at $123/share. Reviewing IBMs 52 week high and low range, the stock fluctuated between $177/share and $212/share over the last year. Today, to purchase IBM stock at $195/share does not appear to be a large risk based on the probability that the stock will continue to increase., ,Other investors may choose to invest in stock rather than bonds since owning stock provides an equity interest in the company and allows them voting rights., ,
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