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

question 375

True/False

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

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Definitions:

Individual Retirement Account

A tax-advantaged investing tool that individuals use to earmark funds for retirement savings.

Rate of Return

The profit or deficit generated from an investment during a defined timeframe, represented as a percentage of the investment's initial value.

Insurance Settlement

An insurance settlement is the payment made by an insurance company to a claimant, policyholder, or a designated recipient as compensation for a covered loss or policy event.

Interest Rate

The percentage charged or paid for the use of money on a yearly basis.