Bonds Differ from Stocks in All of These Ways Except

question 120

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)a bondholder loans money to the corporation, which has priority for repayment, while a stockholder may lose her investment 
• C)stockholders know with a high degree of certainty how much money they will get, while bondholders do not 
• D)all of these are correct

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Definitions:

Median Voter Theorem

A theory suggesting that a majority rule voting system will select the outcome most preferred by the median voter.

Middle-of-the-Road

A course of action or opinion that avoids extremes and adopts a moderate or balanced viewpoint.

Median Voter

A theoretical concept in political economy and public choice theory that suggests policies are determined by the preferences of the median voter when voters are positioned along a single policy dimension.

Voter Type

Refers to categories of voters distinguished by specific characteristics such as political preference, age, or socioeconomic status.