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Q: Why do stocks tend to be a riskier investment than bonds?
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What statement describes a pair of stocks that meet this recommendation?

Investment counselors recommend buying stocks whose returns show a negative correlation in order to minimize the risk of big losses. ANSWER: A stock whose returns tend to increase when the returns of a second stock are decreasing.


How is an I bond different from a T bill?

An I bond differs from a T bill in that the terms of investment vary. T bills run for as little as two years before they mature, whilst I bonds tend to run for at least ten years.


What are some of the dangers of bond investing?

Buying bonds consists of loaning money, usually to an entity like a government. As governments tend to be fairly stable, this is a relatively low-risk investment. The greatest drawback to bonds may be their consistency; unlike other investments, they are unlikely to jump in value in response to large market fluctuations.


When the Federal board engages in a tight money policy the price of government bonds tend to?

fall


How To Invest For Income Using Stocks?

When people think of investing for income, they usually think first about bonds, CDs or money market funds. That makes sense because each of these investments quotes a yield and pays out income on a regular basis whether it’s monthly or every six months. It’s easier using these investments because you kind of know what you’re getting. What some people don’t know is that you can use stocks for the same purpose. Many larger companies pay out dividends on a quarterly basis and those dividends can be used as a regular source of income as well. One of the perks, especially nowadays, is that depending on the company and type of stock you may be purchasing many stocks sport yields that are as competitive as or even more competitive than bond or CD yields. Now, that yield that comes with owning stocks can come with a caveat as well. Bonds, bond funds and CDs tend to have more of a stable value. Bonds and bond funds may have some fluctuation in value but the majority of the return you see tends to be in the form of income. The opposite can be true of stocks. Stocks may produce a steady dividend yield but you need to own the stock in order to get it and stock ownership comes with all of the daily price fluctuations that you’d come to expect from equity investments. Stocks can produce great dividend yields but be sure that you’re willing to take the risk that comes with investing in stocks in general. A good year in the market could enhance the return you get in dividends quite a bit but a down year, like some of the ones we’ve experienced recently, could wipe out of your dividend gains and then some. When looking for yield, don’t just look at the usual suspects. Investing in stocks for income could enhance your investment’s return will reducing your portfolio’s overall risk. It could be a winning combination!

Related questions

What does the website Scottrader provide?

The Scottrader website provides a brokerage service for its clients. These tend to be that related on stocks, bonds and funds such as mutual funds and derivatives.


What statement describes a pair of stocks that meet this recommendation?

Investment counselors recommend buying stocks whose returns show a negative correlation in order to minimize the risk of big losses. ANSWER: A stock whose returns tend to increase when the returns of a second stock are decreasing.


Do molecular bonds have very strong bonds?

they tend to have strond bonds


Why do group 4a elements tend to form covalent bonds?

Why does group 4A elements tend to form covalent bonds rather than ionic bonds? 


What is a small risk of loss in an investment?

A small risk of loss in an investment typically refers to an investment that is relatively stable and has a lower likelihood of significant declines in value. While no investment is entirely risk-free, some assets are considered less risky compared to others. Here are some examples of investments with a relatively small risk of loss: Blue-Chip Stocks: These are shares of large, well-established companies with a history of stable earnings and a strong market presence. Bonds: Government bonds or highly-rated corporate bonds tend to have lower risk because they are considered safer investments, offering regular interest payments and return of principal at maturity. Index Funds: These funds track a broad market index, providing diversification and lower risk compared to investing in individual stocks. Real Estate Investment Trusts (REITs): REITs allow investors to gain exposure to real estate without direct ownership, and they often provide stable dividends. High-Quality Dividend Stocks: Stocks of companies that consistently pay dividends and have a strong financial position may offer a lower risk of loss. Savings Accounts: Keeping money in a savings account or a money market account at a reputable bank is generally considered safe, but returns may be lower. Certificates of Deposit (CDs): CDs are time deposits with fixed interest rates and maturities, providing a known return and low risk.


How well do internet stocks sell?

Internet stocks tend to have a high value; therefore, internet stocks sell for a lot of money. Internet stocks such as Ebay and Google have some of the highest values.


What are clues for ionic and covalent bonding?

A metal bonding with non-metals tend to form ionic bonds, a non-metal that bonds with another non-metal tend to form covalent bonds.


Carbon atoms tend to form what bonds?

Carbons almost always form covalent bonds.


What bonds does carbon atoms tend to form?

Carbon will almost always form bonds with other carbon atoms, and that is part of what makes it such a useful element.


How is an I bond different from a T bill?

An I bond differs from a T bill in that the terms of investment vary. T bills run for as little as two years before they mature, whilst I bonds tend to run for at least ten years.


Why do atoms form convalent and not ionic bonds?

The difference in electronegativity determines the type of chemical bonding between atoms. Metals and nonmetals often have a large difference in electronegativity, and tend to form ionic bonds, while nonmetals bonded to nonmetals tend to have smaller electronegativities and tend to form covalent bonds.


What are some of the dangers of bond investing?

Buying bonds consists of loaning money, usually to an entity like a government. As governments tend to be fairly stable, this is a relatively low-risk investment. The greatest drawback to bonds may be their consistency; unlike other investments, they are unlikely to jump in value in response to large market fluctuations.