Bonds are certificates representing partial ownership of a firm.

Question 20 options:

True

False

1 answer

False

Bonds are not certificates representing partial ownership of a firm; they are debt instruments that represent a loan made by an investor to a borrower (typically a corporation or government). When you buy a bond, you are lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value upon maturity. Ownership of a firm is represented by stocks, not bonds.