The valuing of investments such as bonds takes many factors into consideration. Bonds come in various forms and interest rate payout plans which can influence the value. Trading off a higher interest rate for stability is sometimes desired. Attaining a higher interest rate on a high-yielding bond or "junk bond" can have associated risks.

• Could you please provide a brief statement that discusses how stock value is determined and what type of stock would you find the most difficult to value- a value stock, growth stock, dividend paying stock, IPO's , international stocks, or any other types of stocks?

 

Answer rating: 100% (QA)

Stock Valuation Balancing Risk and Potential Unlike bonds with relatively predictable cash flows sto... View the full answer