Compared to bonds, common stocks
A) are easier to analyze.
B) have a fixed life.
C) have a more uncertain value.
D) have a maximum payment to owners.

Question

Quizplus · Accepted Answer

Common stocks have a more uncertain value compared to bonds, as their returns are not fixed and depend on the company's performance. A) is incorrect as analyzing common stocks requires understanding a company's financial performance and future prospects. B) is incorrect as common stocks do not have a fixed life like bonds. D) is incorrect as common stocks do not have a maximum payment to owners, their returns can vary depending on dividends and stock price.

Compared to Bonds, Common Stocks