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CNBC Quizzes

Quiz: Quiz: Think You Understand Markets? Prove It

Question 2 of 14

If you buy a company's bond...

  1. You own a part of the company
  2. You have lent money to the company
  3. You are liable for the company's debts
  4. You can vote on shareholder resolutions
  5. Don't know/Not sure
Correct!

Bonds are loans that investors make to a corporation or a government body in exchange from regular interest payments and the return of principal at a future date. Companies issue corporate bonds to raise money for capital expenditures, operations, and acquisitions. But unlike stockholders, bondholders don't receive ownership rights in the corporation.