Explain the difference between a stock and a bond

What will be an ideal response?

Answer: A stock represents a share of ownership in a company. A bond is a certificate that shows the owner has lent money to a company or government agency.
Explanation: Stocks represent shares of ownership in a company; bonds are certificates that demonstrate a person or institution has lent money to a company or government agency.

Business

You might also like to view...

In the evaluation of training, a determination of whether the trainer actually covered all aspects of the training as designed is called

A) Outcome evaluation. B) Outcome. C) Phase evaluation. D) Process evaluation. E) Procedural evaluation.

Business

In some respects, internationally diversified portfolios are the same in principle as a domestic portfolio because:

A) the investor is attempting to combine assets that are perfectly correlated. B) investors are trying to reduce systematic risk. C) investors are trying to reduce the total risk of the portfolio. D) all of the above

Business