Difference between common stock and bonds

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Reference no: EM131913271

1. Which of the following is a difference between common stock and bonds?

a. Dividend paid to stockholders is tax-deductible but interest paid to bondholders are not.

b. Bondholders have a voice in management; common stockholders do not.

c. Stocks have a stated maturity but bonds do not.

d. Bondholders have a senior claim on assets and income relative to stockholders.

2. ________ are financial instruments that allow stockholders to purchase additional shares at a price below the market price, in direct proportion to their number of owned shares.

A. Preemptive rights

B. Treasury stocks

C. Proxy statements

D. Rights offering

Reference no: EM131913271

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