Stocks are different from bonds because ________.
A)stocks,unlike bonds,are major sources of funds
B)stocks,unlike bonds,represent residual ownership
C)stocks,unlike bonds,give owners legal claims to payments
D)bonds,unlike stocks,represent voting ownership

Question

Quizplus · Accepted Answer

Stocks represent residual ownership in a company, meaning stockholders are owners of the company and have a claim on its residual assets after debts and liabilities are paid. Bonds, on the other hand, are a form of debt investment and do not confer ownership rights.

Stocks Are Different from Bonds Because ________