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A Major Difference Between Stocks and Bonds Is That

Question 6

Multiple Choice

A major difference between stocks and bonds is that


A) bonds pay their owners dividends while stocks pay interest.
B) bonds pay their owners interest while stocks pay dividends.
C) the interest on a bond depends on the earnings of the corporation and is not guaranteed while dividends on stock are legally required.
D) bonds represent ownership while stock represent debt.

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