courtneywatson42 courtneywatson42

23-05-2018
Social Studies

contestada

Why is a high-quality bond typically considered a lower-risk investment than a stock?
A. Bonds are issued by many different entities .
B. Well-established company stocks pay dividends to their investors.
C. A bond typically pays a fixed, predictable amount of interest each year.
D. Stocks are stable and do not change often.

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MrsTriplet MrsTriplet

01-06-2018

Why is a high-quality bond typically considered a lower-risk investment than a stock? A bond typically pays a fixed, predictable amount of interest each year. Since a bond is a fixed income investment it commonly stays more low-risk over a stock. A stock can fluctuate when there are changes in the company they have purchased stocks through has good or bad months on the market.

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