John is entering retirement on a decreased income. At his retirement party, he was gifted a small amount of money that he'd like to invest. In the coming years, he wants to see a positive return on his investment but cannot afford to lose it. Which is the best investment choice for John? (2 points)
a]US Treasury bond
b]common stock
c]preferred stock
d]corporate bond

Question

John is entering retirement on a decreased income. At his retirement party, he was gifted a small amount of money that he'd like to invest. In the coming years, he wants to see a positive return on his investment but cannot afford to lose it. Which is the best investment choice for John? (2 points) 
a]US Treasury bond
 b]common stock
 c]preferred stock
 d]corporate bond

jhonyy9 · Answer

@supie what you think about this pls ? maybe a. ? i think it so

jhonyy9 · Answer

@Laylalyssa any idea here ?

Angle · Answer

Stocks are known to be volatile. If a company does not do well in the future or goes bankrupt - it can render that company's stock worthless. (We can rule out B and C)

Bonds are relatively safer compared to stocks. It is essentially a promissory loan you are offering and for them to pay you back with interest over time.

That being said, you want to decide: Is it safer to have a bond with the US or to have a bond with some company?
aka, how likely is it for a company to go bankrupt vs the US government to fall to pieces?
^That is how you can pick between A and D