Business Finance
Bonds vs. Stocks

Question 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.

Final 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


madhavant (2757)
Rice University

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