Suppose Antonio would like to use $10,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose RoboTroid, a robotics firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a share of RoboTroid stock would give Antonio the firm. In the event that RoboTroid runs into financial difficulty, will be paid first. Suppose Antonio decides to buy 100 shares of RoboTroid stock.

The bondholders will be paid first before the shareholders.

Explanation:

A stock is a collection of shares which a company issued to raise funds for its activities. It is a mass of capital which can be transferable.it is usually a fully paid stock and its converted from a share issued to shareholders. The sale of stock makes the stockholder a part owner of a company.

A bond is a written acknowledgements of indebtedness to lenders stating the intention of the borrower to repay certain amount of money at a stated maturity date.interest is paid on the loan over the life of the bond. The sale of bond is widely used by companies to obtain long term financing.Purchasers of bond are called bondholders. Therefore, in the event of financial difficulty the bondholders are paid first because they are the creditors to the company before the shareholders are paid. Since Antonio decides to buy 100 shares of Robo Troid stock, Antonio is a shareholders in Robo Troid.

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