The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Buying a newly issued bond implies:

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-Buying a newly issued bond implies:

Quizplus · Accepted Answer

Buying a newly issued bond means lending money to the issuing firm in exchange for interest payments and the repayment of principal when the bond matures. This is different from buying shares of stock, which implies ownership in the issuing firm. Borrowing money from a private bank or international organization is not related to buying a bond. Paying for a service rendered by the issuing firm is also not related to bond buying.

The Figure Given Below Shows the Demand [D and D']