Which of the following would most likely be considered the safest investment?
A) Corporate bond
B) Certificate of deposit
C) Common stock
D) Cumulative preferred stock
E) Preferred stock

Question

Quizplus · Accepted Answer

Certificate of deposit is considered the safest investment as it is insured by the FDIC (Federal Deposit Insurance Corporation) and the investment is guaranteed to be returned with interest. Corporate bonds, common stock, and preferred stock come with varying levels of risk and do not have the same guaranteed return as a certificate of deposit. Cumulative preferred stock may be considered less risky than common stock or preferred stock, but it still carries more risk than a certificate of deposit.

Which of the Following Would Most Likely Be Considered the Safest