Why is a high quality bond typically considered a lower risk investment than a stock?

2 answers:

8 0

High quality bond typically considered a lower risk investment than a stock because it usually has a higher probability rate of returning.
Meanwhile, stock price usually unpredictable and heavily reliant on the market's condition.

frosja888 [35]3 years ago

7 0

high quality bond typically considered a lower risk investment than a stock because it usually has a higher probability rate of returning.

Meanwhile, stock price usually unpredictable and heavily reliant on the market's condition.

Explanation:

There is a risk associated with having a stock, and many unexplained variables. The value of the stock could plummet, putting your principal property at risk. There is no guarantee of return on the property, and even well-established companies have had to cut profits during difficult times.

In the case of bonds, you are assured by the bond issuer that your principal and the agreed-upon share will be paid at a specified time

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