A major difference between stocks and bonds is that

Question

Quizplus · Accepted Answer

The main difference between stocks and bonds is that stocks represent ownership in a company, while bonds represent a loan to a company. Bonds pay their owners interest, while stocks pay dividends. The interest on a bond is typically a fixed amount, while dividends on stocks can vary depending on the company's profitability. Additionally, while dividends on stocks are not legally required, bondholders are legally entitled to receive interest payments.

A Major Difference Between Stocks and Bonds Is That