Common stocks are ____ risky for the issuing corporation and ____ risky for the corporation's stockholders, compared to other financial assets, such as bonds.

Question

Quizplus · Accepted Answer

Common stocks are generally less risky for the issuing corporation because they do not create a fixed payment obligation like bonds do. However, they are typically more risky for the corporation's stockholders because their investment is subject to fluctuations in the stock market and the company's performance.

Common Stocks Are ____ Risky for the Issuing Corporation and ____

Common Stocks Are Risky for the Issuing Corporation and