In the Context of Financial Securities, Identify a Similarity Between

question 28

Multiple Choice

In the context of financial securities, identify a similarity between stocks and bonds.

• A) Holders of both stocks and bonds are the creditors of a corporation.
• B) Holders of both stocks and bonds are legally entitled to receive a dividend.
• C) Like bonds, stocks are formal IOUs issued by corporations.
• D) Like stocks, the price of bonds can rise and fall.

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