In regards to the fact that the pricing of stocks is more difficult than the pricing of bonds,which of the below statements is FALSE?
A)Cash dividends,unlike coupons for bonds,typically change from year to year.
B)The ending price of the stock at any point in time is not fixed like the par value of the principal.
C)Because a stock has no maturity date,the number of its payments are unknown.
D)A stock's final sale is fixed in time on its maturity date.

Question

Quizplus · Accepted Answer

Stocks do not have a maturity date, so there is no final sale fixed in time on a maturity date like there is with bonds. Therefore, statement D is false. A, B, and C are true statements about the difficulty in pricing stocks compared to bonds.

In Regards to the Fact That the Pricing of Stocks