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15 May, 10:48

Jason and Hernando both decided to invest in the same company. Jason expects to be paid back in full for his investment plus some interest, whereas Hernando only expects to receive dividends from his investment. What is the difference between Jason's and Hernando's investments?

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  1. 15 May, 12:04
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    Jason investment - debt security

    Hernando investment - equity security

    Explanation:

    By using the information, we get to know that Jason expected that full investment would be paid back along with some interest which means he is dealing in debt security which includes the loan plus interest part.

    Whereas, Hernando expected that dividend is received on that amount which he is invested which means that he is dealing in equity security.

    The equity security involves stock in equity security whereas loan or bond is a debt security
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