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

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04-12-2017
Business

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

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hughesroy76 hughesroy76 · Answer 1 · 2017-12-04T00:53:38+01:00

hughesroy76 hughesroy76

04-12-2017

There is risk in owning a stock and many unknown variables.
In the case of bonds, you are guaranteed by the bond issuer that your principal and the agreed-upon interest will be paid at a defined time.

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