A) the share of stock is a legal claim while the bond is not.
B) the bond owner has voting rights within the corporation whereas the stockholder does not.
C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond’s maturity date, whereas the stockholder is entitled to a share of future profits.
D) stocks are issued in return for funds that are lent to the corporation.
B) the bond owner has voting rights within the corporation whereas the stockholder does not.
C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond’s maturity date, whereas the stockholder is entitled to a share of future profits.
D) stocks are issued in return for funds that are lent to the corporation.
ANSWER:
C