A bondholder generally takes less of a financial risk than a shareholder of a corporation.

Name: A bondholder generally takes less of a financial risk than a shareholder of a corporation.
Brand: Quizplus
Rating: 4.9 (27 reviews)

Question

Quizplus · Accepted Answer

Bondholders are creditors to the corporation and have priority over shareholders in claims on assets and earnings. Bonds typically come with fixed interest payments, providing more predictable returns, whereas shareholders assume more risk with variable dividends and are last in line in case of liquidation.

A Bondholder Generally Takes Less of a Financial Risk Than