Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 5

Evaluate each of the following statements and say whether it describes a loan, a bond, and/or a stock.
a. It pays some form of interest, and principal is paid at maturity.
b. It implies ownership in the issuing firm.
c. Small businesses use these to raise funds for investment.
d. This is also known as equity financing.
e. We can think of this as a more liquid version of a loan.