Question

Select all the correct answer. Which TWO statements comparing stock and bond investments are true? A. Bonds typically offer higher returns than stocks. Stocks have higher risk than bonds. B. A bond offers fixed interest income, while a stock may offer dividends to investors. C. Investors pay a brokerage fee for buying and selling bonds, while they pay an advisory fee for buying and selling stocks. D. Bonds are traded on an equity-based exchange, while stocks are purchased directly from a corporation.

Answer 1

Answer:

2. 3.

Explanation:

Answer 2

Answer:

B, C

Explanation:

A stock gives the holder of the stock ownership right in the company that issues the shares.

Stockholders may earn dividends from a company.

Stocks are usually traded on exchanges

Stocks are more risky than bonds so they offer higher returns.

A bond is a debt instrument.

Debtholders are entitled to fixed interest rate payments.

Bonds are usually sold over the counter