Your rich uncle, Ebenezer, dies and leaves you $10 million. You plan to buy $10 million worth of common stock in Microsoft, but your accountant thinks you should buy $10 million worth of Microsoft bonds.
a. What is the difference between Microsoft's common stock and its bonds?
b. What is the advantage of each?
c. What is the disadvantage of each?

Question

Your rich uncle, Ebenezer, dies and leaves you $10 million. You plan to buy $10 million worth of common stock in Microsoft, but your accountant thinks you should buy $10 million worth of Microsoft bonds.
 a. What is the difference between Microsoft's common stock and its bonds?
 b. What is the advantage of each?
 c. What is the disadvantage of each?

Quizplus · Accepted Answer

The Answer of Your rich uncle, Ebenezer, dies and leaves you $10 million. You plan to buy $10 million worth of common stock in Microsoft, but your accountant thinks you should buy $10 million worth of Microsoft bonds.
 a. What is the difference between Microsoft's common stock and its bonds?
 b. What is the advantage of each?
 c. What is the disadvantage of each?

Your Rich Uncle, Ebenezer, Dies and Leaves You $10 Million