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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.)

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16y ago

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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?

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Are money market accounts safe for investing?

Money market accounts are generally considered safe for investing because they are low-risk and offer stability. They typically provide a higher interest rate than a regular savings account, but lower returns compared to riskier investments like stocks.


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.


How safe is a money market account compared to other investment options?

A money market account is generally considered a safe investment option compared to other investments because it offers low risk and stable returns. However, the returns may be lower than riskier investments like stocks.


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.


Why is investing in stock considered more risky than investing in savings bonds?

Investing in stocks is considered riskier than investing in savings bonds primarily due to the inherent volatility of the stock market. Stock prices can fluctuate significantly based on market conditions, company performance, and investor sentiment, leading to the potential for substantial losses. In contrast, savings bonds offer a fixed interest rate and a guarantee of principal repayment, making them a more stable and predictable investment option. This lower risk profile attracts conservative investors who prioritize capital preservation over higher potential returns.