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solong [7]
3 years ago
6

Which characteristic of a bond distinguishes it from a share of stock?

Social Studies
2 answers:
Ann [662]3 years ago
5 0

Answer:

The characteristic of a bond that distinguishes it from a share of stock is that a bond represents ownership of debt.

Explanation:

In finance, a debt title issued by a public or private entity, that is, belonging to the government or a company, is called a bond.

Bonds imply the possession of a credit against who issued that bond, who in turn has the obligation to pay the amount inserted in it plus the interest that has been agreed upon.  Bonds are debt securities, which entities issue to cover expenses when they do not have the liquidity to do so with their own resources.

On the other hand, stock shares only represent a portion of the company that is owned by the person who buys it, but they do not represent a credit receivable by the owner.

trasher [3.6K]3 years ago
3 0

Answer:

The answer: A bond represents ownership of debt.

Explanation:

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