Question

FILL IN THE BLANK. online businesses that are ___ companies cannot, in general, borrow from a bank or offer bonds or stock to investors.

Answer 1

Investment Company (IC): An IC is any business that engages in the acquisition of securities as its primary business and is a financial institution.

What do bonds and stocks mean?

What distinguishes stocks and bonds from each other? The primary distinction between stocks and bonds is that stocks give you a portion of a corporation's ownership, whereas bonds are a debt you make to a business or the government.

The way the bond market works

On the primary market for bonds, new debt is either issued, or investors can purchase existing debt on the secondary market through brokers or other intermediaries. Although they are typically less volatile and more conservative than stock investments, bonds have lower expected returns than stocks.

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