Question

How does a bond differ from a stock? Select all that apply.

Answer 1

Answer:

1, 2 and 5

Explanation:

A bond may be issued by the govt or a public company to raise cash for the time being and return it to the investors when the bond matures. While on the other hand, stocks are a small ownership of the company which you buy at the prevailing price in the stock market. The bonds are held for long term whereas stocks can be bought and sold within the same day. The return on bonds are stated before while stocks depend on the volatility of the stock market therefore its riskier.