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Discuss at least three differences between investing in common stocks and investing in bonds.
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- To describe the pros and cons of investing in stocks than bonds?A bond is considered as _________. a. debt instrument b. equity investment c. preferred stock d. equity instrumentExplain fully when making the comparison between stocks and bonds and clearly show that you understand the differences between stocks and corporate bonds.
- Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a substantial increase in value. Rank these same securities with regard to investors' legal claims for repayment on their investments.Similarities and differences of stocks and bonds.Explain the different investment strategies for bonds (four strategies) and discuss why investors might choose passive investment strategies in bond trading.