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2 months ago
A difference between a share of stock in a corporation and a corporate bond is that

• the share of stock is a legal claim while the bond is not.

• the bond owner has voting rights within the corporation whereas the stockholder does not.

• stocks are issued in return for funds that are lent to the corporation.

• the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits.
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Economics Today: The Micro View
Edition: 19th
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the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits.
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