In regards to the fact that the pricing of stocks is more difficult than the pricing of bonds, which of the below statements is FALSE?
A) Cash dividends, unlike coupons for bonds, typically change from year to year.
B) The ending price of the stock at any point in time is not fixed like the par value of the principal.
C) Because a stock has no maturity date, the number of its payments are unknown.
D) A stock's final sale is fixed in time on its maturity date.
Answer: D
Explanation: D) Technically, a stock does not have a "maturity" date like a bond. Thus, the final sale of a stock by an investors is NOT fixed in time on a maturity date. An investor is free to choose his or her own selling point in time, and the point in time is not limited by a maturity date.
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