Which of the following about stocks and bonds is true?
A) Bond owners are entitled to the fraction of the firm's future revenues represented by their ownership shares.
B) As long as the organization issuing the bond is solvent, the bondholder can count on the funds being repaid with interest.
C) Stocks provide businesses, governments, and other organizations with a convenient way to borrow money.
D) All of the above are true.

Question

Quizplus · Accepted Answer

Bondholders are creditors to the issuer and are entitled to repayment with interest as long as the issuer remains solvent. Stocks represent ownership and do not guarantee repayment.

Which of the Following About Stocks and Bonds Is True