A Bond and Stock Differ in That a Stock Is

question 130

True/False

A bond and stock differ in that a stock is an IOU for a fixed amount and a bond is a portion of ownership.

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Definitions:

Discontinued Operations

Components of a company that have been sold or terminated, reported separately in financial statements for clarity.

Continuing Operations

Refers to the parts of a business expected to continue operating and generating revenue over the long term, excluding any discontinued operations.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Investing Activities

Cash flow activities that include (a) purchasing and disposing of investments and property, plant, and equipment using cash and (b) lending money and collecting the loans.