Question

Stocks, compared to bonds, have which of the following characteristics?
A.More stability
B.No certification of ownership
C.Guaranteed interest
D.No maternity date

Answer 1

Cross B out. I think.

Answer 2

Ummmm, Cross C out.

Answer 3

You only have 2 more options which are A and D. Which one do you believe is the right answer?

Answer 4

Also welcome to QuestionCove.

Answer 5

And if your afk please let me know.

Answer 6

Thanks:)

Answer 7

\(\color{#0cbb34}{\text{Originally Posted by}}\) @Zeus
Thanks:)
\(\color{#0cbb34}{\text{End of Quote}}\)
Np and gtg!

Answer 8

Stocks are more risky compared to bonds because you could lose everything when the company goes bankrupt. In the event of bankruptcy, bondholders and banks who loaned money are paid back first. After they are paid, any stockholders will get what's left over (which is usually very small or practically nothing).

Despite this risk, people go for stocks because they yield back a higher return. The general rule is "high risk, high reward". Ideally you should have both stocks and bonds. The mix of both provides diversification so if one bad thing happens to a company or sector, then you have other positive portions of your portfolio to make up for the losses. In short, don't put all your eggs in one basket.

Bonds provide a steady stream of interest payments. This is known as the coupon payment. Some stocks do the same sort of thing known as dividends, but not all stocks do this. Growth stocks will likely avoid dividends so they can grow the company, rather than pay out shareholders.

A bond is basically a loan, which means that after a certain point in time, the loan is fully payed back (plus interest) and this moment in time is referred to as "maturity". Stocks do not have maturity. You can own them for as long as you want, assuming the company stays afloat.