Why is a high-quality bond typically considered a lower-risk investment than a stock?
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The payout factor in bonds is higher than the stocks.
The high quality bonds are free from any kind of recessions.
These are not affected in the recession periods like in stocks.
Bondholders are paid first before paying the stakeholders of the company.
Thus the risk of return is quite less.
The high quality bonds are free from any kind of recessions.
These are not affected in the recession periods like in stocks.
Bondholders are paid first before paying the stakeholders of the company.
Thus the risk of return is quite less.
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