In: Economics
Which of the following is a difference between stocks and
bonds?
Bonds make interest payments; stocks pay dividends.
Bonds represent debt; stocks represent ownership.
Bonds often specify a repayment period; stocks typically do not.
All of these are differences between stocks and bonds.
Correct option: Bonds represent debt, stocks represent ownership
Reason: Bonds are debt or liability for money to be paid back
Stocks are like buying ownership in a company