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

1 answer:

8 0

<span> <span>In investment, the term risk can be defined as the possibility of the investor losing all or part of their capital in a given venture. High quality bonds are considered lower risk because the the investor is promised to receive face value after a certain period unlike stocks that do not carry the same promise. Returns on high quality bonds are also guaranteed in the form of fixed interest rates whereas in stocks, a company may pay dividends but this is not an obligation on their part. Lastly bonds are safer investment as they are less susceptible to abnormal price changes unlike stocks whose prices can easily swing in either direction.</span></span>

You might be interested in

In the classical approaches to management, proponents of the __________ approach argued that managers should stress primarily em

bogdanovich [222]

It should be noted that In the classical approaches to management, proponents of the Human Relations approach argued that managers should stress primarily employee welfare, motivation, and communication.

<h3>What is Human Relations management?</h3>

Human Relations management theory can be regarded as premise of organizational psychology which explains that an employer can employee productivity and motivation by positive social bonds.

Therefore, Human Relations support managers to be stressing primarily employee welfare and motivation.

Learn more about Human Relations at;

brainly.com/question/1657284

7 0

2 years ago

What is the BEST way to stay organized? Person with a descriptive and correct one sentence answer will receive brainliest for th

olga55 [171]

Answer:

Jssjnsnss is a great place to work for and it is a great place to work for and it will help us out to the best of our experience as well as the best and fastest growing business in the

7 0

2 years ago

Read 2 more answers

Joshua Gnaizda received an envelope in the mail from Time, Inc. The front of the envelope contained two see-through windows part

andreev551 [17]

Answer and Explanation:

There is no contract between Time's and Joshua, because it is not legally binding to each other and it has not been signed by either party. So not a single party is liable for the contract as the contract is unsigned and non-liable

Time has used it as a promotional means only for promoting magazine subscriptions.

Therefore, a case can not be built on letter-based basis.

7 0

3 years ago

When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to

Masteriza [31]

Answer: centralization

Explanation:

When the decisions of a company are very risky and low-level managers lack decision-making skills, the company will tend to centralize.

Centralization is simply when an organizational activities especially those that has to do with decision making, planning, framing policies and strategies are all concentrated in a particular location group.

7 0

3 years ago

During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a persons bank account inc

Tatiana [17]

The answer is D.} the inflation rate was 12 percent.

4 0

3 years ago