A Difference Between a Share of Stock in a Corporation

question 444

Multiple Choice

A difference between a share of stock in a corporation and a corporate bond is that

• A) the share of stock is a legal claim while the bond is not.
• B) the bond owner has voting rights within the corporation whereas the stockholder does not.
• C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits.
• D) stocks are issued in return for funds that are lent to the corporation.

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Definitions:

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