How does a bond differ from a stock? Select all that apply.

A bond is issued for a certain amount, while a stock is a small part of ownership in a company

A bond is usually issued by a government, while a stock by a public for profit company

A bond is something you keep forever, while a stock you can buy and sell whenever you want

A bondholder receives interest from the bond-issuer, while a stock holder receives nothing until they sell the stock

A bond is considered a safer investment, while a stock is considered riskier

Question

Advanced Placement (AP)

Andrea Shields

21 October, 09:49

How does a bond differ from a stock? Select all that apply.

A bond is issued for a certain amount, while a stock is a small part of ownership in a company

A bond is usually issued by a government, while a stock by a public for profit company

A bond is something you keep forever, while a stock you can buy and sell whenever you want

A bondholder receives interest from the bond-issuer, while a stock holder receives nothing until they sell the stock

A bond is considered a safer investment, while a stock is considered riskier

+3

Answers (1)

Know the Answer?

Emmy Morton · Answer 1

A&B are true

C - bonds have a specified term of maturity, therefore it is not forever

D - stock holders can receive dividends before selling the stock

E-While typically safer, bonds are not categorically safer than stock