From an investor's viewpoint, bonds generally provide a safer investment option than does the stock of the same corporation.

Question

Quizplus · Accepted Answer

Bonds are generally considered safer investments than stocks because they offer a fixed rate of return and have a higher priority in receiving payment in the event of a company's bankruptcy. Stocks, on the other hand, are more volatile and their value is subject to market fluctuations, making them riskier investments.

From an Investor's Viewpoint, Bonds Generally Provide a Safer Investment