Question: Which of the following is NOT correct? A difference between bonds and shares is that: A. bonds pay a fixed regular stream of income and

Which of the following is NOT correct?

A difference between bonds and shares is that:

A.

bonds pay a fixed regular stream of income and shares pay a fluctuating stream of income.

B.

bonds are issued by governments or companies while shares are issued only by companies

C.

bonds are liabilities for the issuer while shares never need to be repaid by the issuer.

D.

the value of money received for selling shares is not known in advance while the value of money received for selling a bond in the secondary market is known in advance.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!