Answer
The given statement is False. The correct statement is, “People who buy shares are purchasing shares of ownership in a company.”
Work Step by Step
Bonds are issued to raise fund. It is a debt instrument where investor lends money to either corporate or government for a certain period in return of the interest amount at a fixed rate at designed intervals and after maturity, the whole amount of bond paid back to the bondholder.
Bonds are issued in order to raise the money for a company without diluting the ownership of current stockholders of the company.Investors can be the owner of the company by purchasing the shares of ownership which are termed as stock.
Hence, the given statement is false.The correct statement is, “People who buy shares are purchasing shares of ownership in a company.”
