What Is the Difference Between a Corporate Bond and a Share

question 44

Essay

What is the difference between a corporate bond and a share of stock?

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Definitions:

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.

Scienter

A legal term referring to the knowledge of the wrongdoing or fraudulent intent in committing an act.

Liability Defense

Liability Defense refers to legal strategies and arguments used to reduce or negate a party's responsibility for a claim or lawsuit.

Insider

An individual with access to confidential or non-public information about a company, often used in the context of insider trading.