A Distinction Between Stocks and Bonds Is That

question 132

Multiple Choice

A distinction between stocks and bonds is that

• A) bonds can be traded many times in the bond market, while stocks are non-transferable.
• B) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange.
• C) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.
• D) stocks represent ownership claims to the company and bonds do not.
• E) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time.

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Definitions:

Cultural

Pertains to the ideas, customs, social behavior, and artifacts of a particular society, group, or time period.

Economic

Relating to economics or the economy, the study of how societies use resources to produce goods and distribute them among individuals.

Genetic

Pertaining to genes and heredity, influencing the characteristics and traits of an organism.

Retained

The act of keeping or holding onto something, such as information in memory or employees in a company.