A distinction between stocks and bonds is that?
A) bonds can be traded many times in the bond market, while stocks are non-transferable.
B) although the return on a bond is determined by the forces of supply and demand, the
return on a stock is set by the stock exchange.
C) bonds cannot be sold to anyone other than the company that issued it while stocks can
be resold to anyone.
D) stocks represent ownership claims to the company and bonds do not.
E) bonds must be held for a fixed number of years whereas stocks can be bought and sold
at any time.
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about 1 year ago
D. Bondholders, though, are ahead of equity holders in a liquidation.
about 1 year ago
The answer is clearly D.
about 1 year ago
A stock of a company is a collection of shares that represents ownership.
Bonds are I.O.U.s