Consider the following statements : Statement I : As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II : Bondholders are lenders to a company whereas stockholders are its owners. Statement III : For repayment purpose, bondholders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?
a
Both Statement II and Statement III are correct and both of them explain Statement I
b
Both Statement II and Statement III are correct but only one of them explains Statement I
c
Only one of the Statements II and III is correct and that explains Statement I
d
Neither Statement II nor Statement III is correct
Financial MarketsBonds vs Equity/StocksBondholdersStockholdersInvestment riskLendersCompany ownersRepayment priority