Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
Question
Book Icon
Chapter C, Problem 2DCS
Summary Introduction

To discuss: The comparison and the relation between the risks involved while investing in stocks as compared to invest in bonds for a longer time period.

Introduction:

Risk refers to the probability of loss in a particular type of event.

Insurance on the contrary refers to the guarantee to an individual or company against the loss or damage caused due to various factors.

Speculative risks refer to the risks that contain the probability of both the conditions that is the chance of profits or loss.

Bonds are the debt securities payable by the company as a promise to the bond holder.

Share refers to the security that shows an ownership of the individual up to the amount of shares in the company.

Blurred answer
Students have asked these similar questions
Write a 500 word essay on the importance of risk management in financial insituttion
It's a given that expenses impact a business’s profit. How would an entrepreneur navigate business risk by determining the fixed and variable expenses the business will incur?
In what circumstances might a large corporation sell stock rather than bonds to obtain long-term financing? In what circumstances would it sell bonds rather than stock?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning