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One difference between selling stock and selling bonds is that: Bonds are typically issued to one investor only, while stock may be issued to many
One difference between selling stock and selling bonds is that:
Bonds are typically issued to one investor only, while stock may be issued to many investors. | ||
Bonds have a fixed return to the investor and common stock has a variable return. | ||
Dividends must be paid on stock, while payment of interest is optional. | ||
A company must use the cash proceeds from bonds to expand operations, while there are no restrictions on cash received from stock. |
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