Bonds Differ from Stocks in All of These Ways Except

question 100

Multiple Choice

Bonds differ from stocks in all of these ways except

• A)a purchase of corporate stock becomes a part owner of the corporation, while a bondholder does not.
• B)bondholders loan money to the corporation, which has priority for repayment, while stockholders may lose their investment.
• C)stockholders know with a high degree of certainty how much money they will get, while bondholders do not.
• D)All of these responses are correct.

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Definitions:

Unanimous

Pertaining to a decision or opinion held or expressed by everyone in a group without dissent.

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An individual who has managed to translate an idea into a profitable business, demonstrating innovation, risk-taking, and persistence.

Venture

A business endeavor involving risk, typically with the expectation of future financial gain.