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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.)
Yes, you can lose a stock, and you can lose a bond, but bonds are harder to lose, and can never decrease in value.
Stocks are considered much more liquid than bonds. This is because stocks are riskier and the value of the stock is determined by the present market.
It's riskier.
Because the price of a stock varies every minute of a trading day and it may go up or down based on the market sentiment and the company's performance. Your investment may lose value heavily in case of a market crash and hence they are much riskier when compared to Saving money in a bank
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.)
Yes, you can lose a stock, and you can lose a bond, but bonds are harder to lose, and can never decrease in value.
Stocks are considered much more liquid than bonds. This is because stocks are riskier and the value of the stock is determined by the present market.
It's riskier.
just give me a explain
AnswerYes, Treasury bonds generally "trend" in the opposite direction from the stock market.
The stock options Incentive Stock Option(ISO)is a method of stocks that can managed by employees. It can be used for tax benefits. It is a bit riskier than the NSO.
The stock market risks fluctuate, in part due to the economy. So, in theory, it may be riskier in the current economy. However, an investor in the market always risks losing money.
Actually, ionic bonds are generally much stronger than covalent bonds; except in solution.
Because the price of a stock varies every minute of a trading day and it may go up or down based on the market sentiment and the company's performance. Your investment may lose value heavily in case of a market crash and hence they are much riskier when compared to Saving money in a bank
Because the future cashflows are more uncertain for a stock than a bond.
A balanced investment portfolio would include both stocks and bonds as well as cash and mutual fund. The mix would depend on your investment objectives and tolerence for risk. If you had to pick just one investment, it would depend on how liquid you want your funds and how much risk you are willing to take. Stocks are riskier and therefore give a higher expected return in the long term. Also it is important to take into consideration your stage in life, older folks, with little income, should stay conservative and stick to bonds, while younger people can assume more risk.