Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.5 Annuities, Methods of Saving, and Investments - Exercise Set 8.5: 42

Answer

People who buy bonds are lending money to the company that will be paid back while stocks are shares of ownership in a company.

Work Step by Step

Investors can earn money with stocks and bonds. People who buy bonds are lending money to the company that the company promises to pay back with interest while stocks are shares of ownership in a company.
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