All of the following are true about bonds EXCEPT…

A.
Bonds are considered a riskier investment option than stocks.
B.
A bond is a loan given to a company or government by an investor who receives interest in return.
C.
Companies and governments issue bonds to fund new projects or ongoing expenses.
D.
Bonds are a way for investors to diversify their portfolios and generate additional income.

1 answer

The statement that is NOT true about bonds is:

A. Bonds are considered a riskier investment option than stocks.

This statement is generally inaccurate as bonds are typically considered less risky than stocks. While risk levels can vary by specific bond or stock, overall, bonds tend to be more stable and less volatile compared to stocks.