Bonds vs. Stocks

User Generated

wfsvyre08

Business Finance

Description

What are the principal differences between stocks and bonds? What are the risks associated with investing in stocks and bonds? Which of these classes of securities is riskier? Explain.

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Explanation & Answer

Stocks offer an ownership stake in a company.Bonds are similar to loans made to a company (a corporate bond) or other organization (like the U.S. Treasury). Stocks are riskier and more volatile than bonds.

Reference:

http://www.diffen.com/difference/Bond_vs_Stock



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