Suppose That You Decide to Purchase Either Stocks or Bonds

question 437

Essay

Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?

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Definitions:

Voidable Contracts

Contracts that are valid and enforceable on the surface but can be declared void by one or more of the parties due to certain reasons, like misrepresentation or lack of consent.

Innocent Misrepresentation

A false statement made about a material fact by a person who believed the statement was true.

Material Fact

An important fact that, if known, could influence a decision in a contract, transaction, or legal case. It is a fact that matters to the matter at hand.

Rescind

To revoke, cancel, or annul a contract or agreement, typically due to the discovery of errors or fraud.