Bonds are considered to be _____ than stocks because _____.
A) less risky; bondholders are less affected by a firm's bankruptcy
B) riskier; stockholders earn dividends and bondholders do not
C) less risky; bondholders earn dividends and stockholders do not
D) riskier; stockholders are less affected by a firm's bankruptcy

Question

Quizplus · Accepted Answer

Bonds are considered less risky than stocks because bondholders are less affected by a firm's bankruptcy. When a company goes bankrupt, bondholders are usually paid back before stockholders, making bonds a safer investment option.

Bonds Are Considered to Be _____ Than Stocks Because _____

Bonds Are Considered to Be _ Than Stocks Because _