Description
Explain the differences between stocks and bonds. Be sure to include how stocks and bonds are carried on the books of the issuer and then of the buyer. What are the pros and cons for the issuer that issues stocks and bonds. APA format. academic/scholarlyy sources only
Explanation & Answer
Attached.
Running Head: STOCKS AND BONDS
1
Differences between Stocks and Bonds
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STOCKS AND BONDS
2
Explain the differences between stocks and bonds.
Stocks represent an ownership interest in an organization while bonds are the longterm debt issued by an investor to an organization with a fixed interest rate, (Surbhi, 2015).
Stocks refer to the goods or products that a company already has for sale. For the bond, it is the
amount of money borrowed by a company from its investor where there is a legal agreement on
the interest and the specific date of paying back.
The holders of the stock have an advantage of the voting rights where they can vote on
specific company issues while the bondholders have no voting rights, (Surbhi, 2015). It indicates
that if there i...
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