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← Equity vs Debt Instruments
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Question
What is the key difference between holding equity and holding a bond in the same company?
1
Equity holders receive regular coupon payments; bondholders receive dividends
2
Equity represents ownership with residual upside and downside; bonds represent a loan with fixed returns and a prior repayment claim
3
Bonds are riskier than equities because they pay fixed returns regardless of performance
4
Equity is always issued by governments; bonds are always issued by corporations
Press 1–4 to pick an answer
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