Question

Bonds and stocks are both securities, which differ in that stockholders bought and own a share in the company, whereas bondholders lend money to company owners. Another difference is that bonds have a defined term, after which the bond is redeemed by the owners, whereas stocks may be outstanding indefinitely. I invested money in company C's stocks.

I didn't lend money to company C.
a. conclusion follows
b. conclusion does not follow

Answer 1

The conclusion does not logically follow from the information provided. Option B is answer.

Step-by-step explanation:

The provided information mentions the differences between bonds and stocks, emphasizing that stockholders own a share in the company, while bondholders lend money. Additionally, it notes that bonds have a defined term, unlike stocks.

The statement "I invested money in company C's stocks. I didn't lend money to company C." doesn't logically follow from the earlier information. While it's mentioned that stocks represent ownership, it doesn't necessarily imply that investing in stocks means not lending money. Therefore, the conclusion does not logically follow from the provided information.

Option B is the correct answer.