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11 July, 09:11

Which of the following is true for both stocks and bonds?

A. They are interest-bearing assets.

B. They are easily converted to cash.

C. They are risk-free assets.

D. They are equity.

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Answers (1)
  1. 11 July, 11:01
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    B. They are easily converted to cash is the correct answer.

    Explanation:

    Stocks and bonds are the main forms of investments. bonds are the debts and it can be issued by the government, city, or company.

    The owners of the bonds are called bondholders,

    Stocks are the shares that are utilized to explain the ownership of a company and they are issued by corporations.

    The owners of the stocks are called stockholders.

    bonds and stocks both are convertible and they both are categorized as securities.
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