Which of the following is a similarity between stockholders and bondholders?
A) Both can experience capital gains or losses.
B) Both are legally entitled to receive annual interest payments from the issuing corporation.
C) Both are creditors of a corporation.
D) Both are owners of a corporation.

Question

Quizplus · Accepted Answer

Both stockholders and bondholders can experience capital gains or losses. Stockholders can gain or lose value based on stock price fluctuations, while bondholders can experience gains or losses if they sell bonds before maturity at a price different from the purchase price.

Which of the Following Is a Similarity Between Stockholders and Bondholders