106k views
0 votes
Bonds ________ and stocks ________.

User Annet
by
3.3k points

1 Answer

5 votes

Answer:

The correct words for the blank spaces are: are low-risk investments; are high-risk investments.

Step-by-step explanation:

Bonds are considered to be low-risk investments compared to stocks because an interest rate fixed payment is made with bonds in regular periods. Instead, stocks are high-risk investments since they payout dividends to stakeholders based on a company's profits implying investors will only earn a profit if the company has been able to earn income during a period. Even if that happens, the firms can retain the earnings for reinvestment.

User RobF
by
4.0k points