A company's bonds will experience more trading activity (in terms of the number of bonds traded on a given day) compared to its stock.

Question

Quizplus · Accepted Answer

Stocks generally experience more trading activity compared to bonds because stocks are more accessible to the average investor, have higher visibility in the media, and are more volatile, leading to more frequent buying and selling. Bonds, especially corporate bonds, are often traded in larger denominations and are more commonly held by institutional investors, leading to less frequent trades.

A Company's Bonds Will Experience More Trading Activity (In Terms