question archive Give 2 points and explain why bond is better than stock?

Give 2 points and explain why bond is better than stock?

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Give 2 points and explain why bond is better than stock?

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As we lnow that stock give ownership in case of common share as well as dividend after paying dividend to prefered stock while bond holder earn interest on bond.

Due to following reason bond is better than stock.

1.Secure return-bond provide interest on bond even though organization does not earn profit while stock investors only received dividend when organization make a profit otherwise no dividend paid to stock investors.

2.Bonds are less risky-Bond is less risky and its almost certain on maturity the bond provide more stable and consistent return which is not ppssible for stock holders because stock is more volatile and risky investment.