Select all the correct answers.

Which two statements comparing stock and bond investments are true?

A. Bonds typically offer higher returns than stocks.
B. Stocks have higher risk than bonds.
C. A bond offers fixed interest income, while a stock may offer dividends to investors.
D. Investors pay a brokerage fee for buying and selling bonds, while they pay an advisory fee for buying and selling stocks.
E. Bonds are traded on an equity-based exchange, while stocks are purchased directly from a corporation.



Answer :

Final answer:

Stocks offer higher returns but higher risks than bonds. Bonds provide fixed interest income. Investors incur fees for transactions in both stocks and bonds.


Explanation:

Stocks offer higher returns over time compared to bonds while also carrying higher risks. Bonds provide fixed interest income, while stocks may offer dividends to investors. Investors pay brokerage fees for buying and selling bonds and advisory fees for buying and selling stocks.


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