The differences between stocks and bonds include which of the following?

Question

Quizplus · Accepted Answer

Choice A is true because the cash flows from stocks are dependent on the company's performance and the market conditions, which are not guaranteed.

Choice B is also true because bonds have a fixed maturity date and a guaranteed repayment of principal amount, while stocks do not have a maturity date nor a guaranteed repayment of principal.

Choice C is true because the cash flows from a bond are predetermined in terms of frequency and amount, while the cash flows from a stock can vary based on the company's performance and the market conditions.

Therefore, all of the above options are differences between stocks and bonds, making choice D the correct answer.

The Differences Between Stocks and Bonds Include Which of the Following