Question: The correct statement about the differences between a stock and a bond includes: A. If you buy a company's stock, you become the owner of

The correct statement about the differences between a stock and a bond includes: A. If you buy a company's stock, you become the owner of the company. If you buy a company's bond, you become the board director of the company. B. A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. In contrast, bondholders essentially become creditors to the company that issues the bond. C. Generally speaking, bonds have higher risks than stocks. D. Generally speaking, bonds have a higher beta than stocks
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
