Corporations can finance their activities through the sale of new stocks but are legally prohibited from selling bonds.
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Q22: Stocks are riskier for buyers because there
Q23: Purchasers of corporate bonds lend money to
Q24: A corporation is an entity separate and
Q25: If bond prices and interest rates are
Q26: The sale of new stocks by a
Q28: A bond and stock differ in that
Q29: The price of bonds is tied to
Q30: If a firm goes bankrupt and liquidates
Q31: Bondholders have a "prior claim" over stockholders
Q32: Corporations must always pay dividends to their
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