Suppose Eric would like to use $2,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose RoboTroid, a robotics firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a share of RoboTroid stock would give Eric the firm. In the event that RoboTroid runs into financial difficulty, will be paid first.

Equity

A claim to partial ownership

The bondholders

Explanation:

1. Suppose RoboTroid, a robotics firm, is selling stocks to raise money for a new lab—a practice known as _EQUITY___ finance.

-Equity financing is the process by which companies raise money/capital by the sale of shares in order to pay Thier bills, fund a project, or invest in Thier growth.

2.)Buying a share of RoboTroid stock would give Eric , A CLAIM TO PARTIAL OWNERSHIP in the firm

When people like Eric buy shares in a company to help the company raise money for its project , then such individual can hold a claim of partial ownership to the firm.

3.In the event that RoboTroid runs into financial difficulty,BOND HOLDERS will be paid first.

Bndholders are given top priority over stockholders in case of financial difficulty or asset liquidation.

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