Corporate bonds

A) represent the true ownership of a corporation.
B) have priority over holders of common stock as to payment of dividends.
C) require a corporation to remain profitable until maturity.
D) provide a proportionate interest in a corporation with regard to control.

Corporate Bonds

Debt securities issued by corporations to finance their operations, which typically pay periodic interest payments and return the principal at maturity.

Common Stock

A security that evidences ownership in a corporation. A share of common stock gives the owner a proportionate interest in the corporation with regard to control, earnings, and net assets. Common stock is lowest in priority with respect to payment of dividends and distribution of the corporation’s assets on dissolution.

Proportionate Interest

The share or percentage ownership that an individual or entity holds in a particular asset, reflecting their portion of the total value or earnings.