Question

Corporations Quick Check
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Question
What are the primary differences between a bond and a stock?(1 point)
Responses

Stocks are units of ownership in a corporation, while bonds are certificates of debt.
Stocks are units of ownership in a corporation, while bonds are certificates of debt.

Stocks are certificates debt, while bonds are units of ownership in a corporation.
Stocks are certificates debt, while bonds are units of ownership in a corporation.

Stocks are contracts that specify duties to the corporation, while bonds are units of ownership in a corporation.
Stocks are contracts that specify duties to the corporation, while bonds are units of ownership in a corporation.

Stocks are units of ownership in a corporation, while bonds are contracts that specify duties to the corporation.

Answer 1

The correct response is:

**Stocks are units of ownership in a corporation, while bonds are certificates of debt.**

This accurately reflects the primary differences between stocks and bonds. Stocks represent ownership in a company and give shareholders a claim on its assets and earnings, while bonds represent a loan made by an investor to a borrower (such as a corporation or government) and entail paying back the principal with interest.