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Consider the risk

Consider the risk

Q What do you think is a riskier investment: Stocks or Bonds? Why?

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The concepts stocks and bonds are equally important and it is really difficult to analyze which one carries more risk. But in general case, it can be said that bonds are actually riskier than that of the stocks. Both stocks and bonds are being used in order to define properly the ownership in a company and they can be implemented well in terms of the trade on the exchanges of stock. The ownership of assets is well being defined by equity after the debt is being cleared off but stock in comparison to this is completely related with that of the traded equity.