Which of the Following About Stocks and Bonds Is True

question 389

Multiple Choice

Which of the following about stocks and bonds is true?

• A) Bond owners are entitled to the fraction of the firm's future revenues represented by their ownership shares.
• B) As long as the organization issuing the bond is solvent, the bondholder can count on the funds being repaid with interest.
• C) Stocks provide businesses, governments, and other organizations with a convenient way to borrow money.
• D) All of the above are true.

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Definitions:

Tendrils

Slender, twining strands used by climbing plants and some animals for support and attachment.

Anchor

A device, normally made of metal, used to connect a vessel to the bed of a body of water to prevent it from drifting due to wind or current.

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The process by which materials or organisms take in water through mechanisms such as osmosis or capillary action.

Absorb Minerals

The process by which organisms take in minerals from their surrounding environment or diet for bodily functions.