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1. True or False: The unlimited liability feature of equities means that investo

ID: 2794863 • Letter: 1

Question

1. True or False: The unlimited liability feature of equities means that investors cannot lose money on stocks.

2. True or False: "When a corporation liquidates it assets, stockholders get paid after bondholders.

3. True or False: Just like stocks, the market value of bonds at maturity is equal to their par value.

4. True or False: Stocks have no finite maturities but bonds do

5. True or False: Unlike investors in bonds, investors in stocks do not have the opportunity to realize regularly recurring income.

Explanation / Answer

1)

False

Investors can lose money on stocks

2)

True

Bond is kind of a loan that needs to repaid first

3)

true

4)

True

5)

True