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Emily Matos
on Dec 01, 2024

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Increasing debt only increases the risk of bondholders and does not affect the risk of stockholders.

Debt

An amount of money borrowed by one party from another, often used by companies and governments to finance projects and operations.

Risk

The potential for losing something of value, often used in the context of investments where there is a possibility of financial loss.

  • Differentiate between risks associated with business operations and financial liabilities.
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Mason TessierDec 05, 2024
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