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lana66690 [7]
3 years ago
10

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

Computers and Technology
2 answers:
Rudik [331]3 years ago
8 0

A bond typically pays a fixed, predictable amount of interest each year.

High-quality bonds are forms of debts issued to firms or companies for a minimum of one year or more. On the hand, stocks are the capital that a business will get by selling out its shares to investors. When these two are combined and compared, high-quality bonds are considered lower risks investments than stocks due to their higher payout. High-quality bonds will be consistent in terms of payout throughout each period while stocks might vary depending on the performance of the company. High-quality bonds are also recession resistant and will get paid first before stake holders in case a company falls .



FinnZ [79.3K]3 years ago
5 0
Its high quality bond typically considered a lower risk investment than a stock because you need to find the answer on your own
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Interval Recording

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Advatages and disadvantages of power-concentrated train​
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Answer:

1. Safety:

2. Cheap:

3. Increases Employment:

4. Bulk Quantity:

The Disadvantages of Rail Transport are as Follows:

1. Loss of Goods:

2. Unsafe for Fragile Items:

3. Late Bookings:

4. Unsuitable for Short Distances:

5. Unsuitable for Rural Areas:

Explanation:1. Safety:

Transportation by the means of railway ensures safety for the desired goods because unlike the road transports a train only stops at a desired station instead of the will of the driver. In case of road transports for example, the drivers can at any point of time decide to rest or stop for tea, refreshments, lunch or dinner.

2. Cheap:

Railway transport any day is cheaper as compared to air transport. As a matter of fact, railway transport is even cheaper than road transport because of the reason that goods in bulk quantities are carried from a desired destination to the other. In cases of road transport for instance, less goods as compared to road transport can be carried.

3. Increases Employment:

Railway transport helps people to carry cheap products from a place to another and sell them at high prices. As a result of this, a number of people who are unemployed find a source of their daily bread.

4. Bulk Quantity:

ADVERTISEMENTS:

Because railway transportation is cheaper as compared to air and road transport, goods can be carried in bulk quantities as a result of which a lot of time is saved.

It is true that as compared to air transport and road transport, rail transport is easier and cheaper but still it has a few disadvantages.

The Disadvantages of Rail Transport are as Follows:

1. Loss of Goods:

Because goods in bulk quantities are carried chances of goods getting lost are high in case of railway transport as compared to air and road transport.

2. Unsafe for Fragile Items:

Railway transportation is particularly unsafe for carrying fragile items like glass because these items can easily break at times when a train halts unexpectedly of when the train is speeding up at times.

3. Late Bookings:

ADVERTISEMENTS:

Because railway is the cheapest medium of transport, it is hard to find suitable bookings for the transportation of your goods. Railway transport is not suitable in cases of emergency.

4. Unsuitable for Short Distances:

Railway transport is unsuitable for carrying goods at shorter distances; road transport is most suitable in this case.

5. Unsuitable for Rural Areas:

Proper railway system is not build up in the Indian villages as a result of which railway transport is unsuitable in the villages of India. Whatever be the disadvantages of railway transport it was, it is and it will always be the safest and the best means for the transportation of goods.

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3 years ago
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