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.

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Chapter C, Problem 2DWS

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.

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