give examples of stocks and bonds
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Stocks and bonds are the two main classes of assets investors use in their portfolios. Stocks offer an ownership stake in a company, while bonds are akin to loans made to a company (a corporate bond) or other organization (like the U.S. Treasury).
In general, stocks are considered riskier and more volatile than bonds. However, there are many different kinds of stocks and bonds, with varying levels of volatility, risk and return.
This comparison offers a basic overview of these asset classes and considerations for incorporating them in a diversified portfolio.
Issued By
Bonds are issued by public sectorauthorities, credit institutions, companies and supranational institutions
Stock are issued by corporation or joint-stock companies
Derivatives :
Bonds-
Bond option,
Credit derivative,
Credit default swap,
Collateralized debt obligation,
Collateralized mortgage obligation.
Stocks-
Credit derivative,
Hybrid security,
Options,
Futures, Forwards, Swap
In general, stocks are considered riskier and more volatile than bonds. However, there are many different kinds of stocks and bonds, with varying levels of volatility, risk and return.
This comparison offers a basic overview of these asset classes and considerations for incorporating them in a diversified portfolio.
Issued By
Bonds are issued by public sectorauthorities, credit institutions, companies and supranational institutions
Stock are issued by corporation or joint-stock companies
Derivatives :
Bonds-
Bond option,
Credit derivative,
Credit default swap,
Collateralized debt obligation,
Collateralized mortgage obligation.
Stocks-
Credit derivative,
Hybrid security,
Options,
Futures, Forwards, Swap
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