UPSC Prelims 2025 · GS Paper 1 · Q7
Economy
Easy · Capital markets / Financial instruments
Consider the following statements comparing bondholders and stockholders (shareholders) of a company:
1. Bondholders are creditors of the company, while stockholders are owners.
2. In the event of liquidation, bondholders are repaid before stockholders.
3. Bondholders generally bear lower risk than stockholders.
Which of the statements given above are correct?