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Generally which is riskier investing in common stocks againts investment in bonds?
Wiki User
∙ 15y ago
Common stock is riskier than bonds. Common stock fluctuates in price as a matter of course. Bonds tell you What they will pay, When they will pay it and For How Long they will pay it. Assuming the company doesn't go into default, bonds are safe. (The risk of bonds is that companies DO go into default, which is why bonds are rated.)
Wiki User
∙ 15y ago
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How would you adjust for risk of the projects in utilizing any capital investment decision model?
It all depends on the type of an investment, project. The riskier the project the higher the expe cted fee/profit; the less riskier the project the lesser the fee/profit.
Where can I get info on how to invest in penny stocks?
Investing in penny stocks is one of the riskier behaviors that traders and investors may engage in within the greater stock market.
Are stocks riskier investment than bonds?
Yes, you can lose a stock, and you can lose a bond, but bonds are harder to lose, and can never decrease in value.
Person who risks money in hopes of a financial profit?
An investor risks money in search of financial profits. Typically, the riskier the investment the higher the payoff will be for the investor.
Why do some people invest their savings in the stock market while others put their savings in bank accounts?
The stock market is a much riskier investment but potential for high returns on investment. Bank accounts (checking and savings) are insured up to $100,000 against loss by the FDIC and usually a lower return on investment.
Which is a riskier investment corporate bonds or technology stocks?
Tech Stocks will be generally more volatile and thus considered more risky.
What was an effect of the formation of stock companies?
Investment in riskier activities. =)
Why people invest where their is more risk?
Return on investment is directly related to risk of investment--the riskier an investment is, the more you have to pay people for making it.
How would you adjust for risk of the projects in utilizing any capital investment decision model?
It all depends on the type of an investment, project. The riskier the project the higher the expe cted fee/profit; the less riskier the project the lesser the fee/profit.
How can I save for retirement?
When investing, the most important thing is to diversify. Since you are young, it's ok to take riskier investments like the stock market because it is a long term investment. Be sure you look at CD's, IRA's, bonds and even precious metals.
What is risk for return?
Risk and return are not a function together, but affect one another indirectly by determining optimal levels of investment. Return is roughly the benefit of investing money into assets; risk is part of the cost of investing that money (due to uncertainty). The varying levels of risk and return change the cost and benefit of investing, thus shifting the equilibrium values of investment.
Why is investment consider to be riskier than saving?
Investment becomes costlier, when funds are invested in a company with hollow promises and returns are thus meagre, in comparison to investments in a company of repute. Whereas savings in bank FD or LIC policies are far less riskier and the return or outcome is well know at the time of investment itself.
Where can I get info on how to invest in penny stocks?
Investing in penny stocks is one of the riskier behaviors that traders and investors may engage in within the greater stock market.
Are stocks riskier investment than bonds?
Yes, you can lose a stock, and you can lose a bond, but bonds are harder to lose, and can never decrease in value.
Person who risks money in hopes of a financial profit?
An investor risks money in search of financial profits. Typically, the riskier the investment the higher the payoff will be for the investor.
What is a good personal finance investment?
Long term CD accounts offer and safe and secure way to invest money. Stocks and bonds are more riskier than CD's and in some cases offer no return on your investment, and may even cause you to loose your entire investment. Careful research will need to be conducted before choosing any type of investment.
Why do some people invest their savings in the stock market while others put their savings in bank accounts?
The stock market is a much riskier investment but potential for high returns on investment. Bank accounts (checking and savings) are insured up to $100,000 against loss by the FDIC and usually a lower return on investment.
