Answer to Question #229077 in Economics for geoffrey

Question

Why it that shares in some companies is are viewed as inherently riskier than shares in other companies?

Answer 1

Stocks are viewed as a riskier financial instrument. Indeed, current payments on shares in the form of dividends are not guaranteed, and from the point of view of capital protection, shareholders, as owners of the company, are in worse conditions than the owners of bonds, since in the event of bankruptcy of the company, the claims of creditors, including the owners of the bonds, will initially be satisfied.