Which of the Following Is a Difference Between Stocks and Bonds

question 144

Multiple Choice

Which of the following is a difference between stocks and bonds?

• A) Bonds may be issued by corporations or government; stock is only issued by corporations.
• B) Stock may be issued by corporations or government; bonds are only issued by corporations.
• C) Bonds are only issued by government; stock is only issued by corporations.
• D) There is no difference in terms of who issues stocks and bonds.

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Definitions:

Interest Dates

Specific dates on which interest payments are made or calculated on bonds, loans, or deposits.

Bond

A financial device signifying a loan provided by an investor to a borrower, usually in the form of corporations or government entities.

Buyer Pays

A term indicating that the buyer is responsible for the costs of goods shipping, insurance, and any related expenses incurred until delivery is complete.

Accrued Interest

Interest that has accumulated over time but has not yet been paid or received.