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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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