Which best describes the difference between stocks and bonds?

A) Stocks allow investors to share in profits; bonds make investors responsible for company debts.

B) Stocks allow investors to own a portion of the company; bonds are loans to the company.

C) Stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year.

D) Stocks are a more reliable investment; bonds tend to be more volatile.

Question

Business

Elyse Murray

22 April, 20:12

Which best describes the difference between stocks and bonds?

A) Stocks allow investors to share in profits; bonds make investors responsible for company debts.

B) Stocks allow investors to own a portion of the company; bonds are loans to the company.

C) Stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year.

D) Stocks are a more reliable investment; bonds tend to be more volatile.

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Answers (1)

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Deanna Gomez · Answer 1

Among the choices the one that best describes the difference between stocks and bonds is B, stocks allow investors to own a portion of the company; bonds are loans to the company. Stocks, or shares of stock, speak to a proprietorship enthusiasm for an organization. Bonds are a type of long haul obligation in which the issuing organization guarantees to pay the primary sum at a particular date. Stocks pay profits to the proprietors, however just if the enterprise announces a profit.