The Figure Given Below Shows the Demand [D and D']

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Why are bonds less risky than stocks?

A) The dividend given on shares is usually less than the coupon-rate on bonds.
B) Bonds can be issued only by the government whereas shares are issued by private firms.
C) Bondholders have a claim on the assets of the firm whereas the shareholders do not.
D) Shareholders are entitled to a share of the company's earnings.
E) The higher the profit of the firm, the greater the share of the bondholders.

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