Which of the following statements are the differences between holding bonds and holding stocks? (1)...
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Accounting
Which of the following statements are the differences between holding bonds and holding stocks?
(1) Bonds represent investors loans to the company. Stocks represent investors ownership in a company.
(2) Bondholders of coupon bonds are entitled to receive coupon payment from the company. Stockholders may or may not receive dividends.
(3) Bondholders have lower priority to get back their money compared to the stockholders in time of bankruptcy.
a.
(1), (2) and (3)
b.
(1) and (3) only
c.
(1) and (2) only
d.
(2) and (3) only
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