One Difference Between Stocks and Bonds Is That

question 168

Multiple Choice

One difference between stocks and bonds is that

• A)stocks are financial securities,while bonds are labor market securities.
• B)stocks are usually issued in electronic form,while bonds are usually issued in paper form.
• C)stocks represent ownership in companies,while bonds represent ownership in banks.
• D)stocks do not involve a promise to repay a purchaser of the stock,while bonds represent a promise to repay the purchase price of the bond.

---

Definitions:

Schedule K-1

A tax document used to report the income, losses, and dividends of a partnership or S corporation's partners or shareholders.

Separately Stated

Items on a partnership or S corporation tax return that must be reported separately on the owners' personal tax returns.

Taxable Dividend

A dividend paid to shareholders that is subject to income taxation.

Corporate Earnings And Profits

The measure of a corporation's ability to generate income over its costs and expenses within a specific period.