One Difference Between Stocks and Bonds Is That

question 2

Multiple Choice

One difference between stocks and bonds is that

• A) unlike bonds, stocks do not represent a claim on a share in the profits and assets of firms.
• B) stocks are financial securities and bonds are labour market securities.
• C) unlike bonds, stocks do not promise to repay a fixed amount of money.
• D) stocks represent ownership in companies and bonds represent ownership in the government.

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Definitions:

Decision-making Innovations

Refers to new methods, processes, or technologies that enhance the way decisions are made in organizations or societies.

Industrialized Countries

Nations characterized by a highly developed economy and technological infrastructure, with a significant portion of the population engaged in manufacturing and services.

Early 1970s

A period that marks the beginning of the 1970s decade, often associated with significant cultural, political, and social changes worldwide.

Labor Market Segmentation

Is the division of the market for labor into distinct settings. In these settings, work is found in different ways and workers have different characteristics. There is only a slim chance of moving from one setting to another.