The key difference between a share of stock and a bond is that

Question

Quizplus · Accepted Answer

A share of stock represents ownership in a corporation, giving the holder a share of profits and voting rights, while a bond represents a loan to a corporation or government and provides a fixed income stream to the holder. Option A is incorrect because stocks have varying degrees of risk associated with them. Option B is incorrect because many bonds make multiple payments over time. Option D is incorrect because both bonds and stocks can be issued by corporations or governments. Option E is incorrect because both stocks and bonds can be traded on secondary markets.

The Key Difference Between a Share of Stock and a Bond