Explain the difference between stocks and bonds discuss return and ownership

Advanced Placement (AP)

1 answer:

Tamiku [17]2 years ago

6 0

Answer:

Stocks represent ownership in a Business (aka Equity).

Bonds represent money lent to a Business (aka Debt).

Unlike with a House, a Business has many owners called Shareholders.

Unlike with a House, a Business borrows from many lenders, called Bondholders.

Stocks and Bonds can be publicly traded, which allows investors to buy and sell daily.

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