Question

In: Economics

Which of the following is a difference between stocks and bonds?

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.



Solutions

Expert Solution

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


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