4
QuizMultiple Choice

Investing — Test

Question 4 • Personal Finance

Why do investors often choose stocks over bonds?

Answer
A
Stocks never lose value
B
Stocks are risk-free investments
C
Stocks offer higher potential growth
D
Stocks always guarantee returns

Explanation

Stocks represent ownership in a company, so their value can rise as the company grows. This gives stocks higher potential growth than bonds, though it also comes with greater risk. Stocks can lose value and do not guarantee returns, so choices A, B, and D are incorrect.

AI-written and checked against the verified answer.

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