Discuss the various risks to an investor associated with holding a stock compared to that of a bond

Risk associated with investment in stock in compared to that of the bond are as follows-

A. Risk associated with the lower realisation of dividend because of the double taxation on the dividend.

B. Risk associated with the lower capital gains due to decrease in the value of the company.

C. These stock investors are also subject to various kinds of market risk and interest rate risk and they are non controllable in nature.

D. Stock investors are also exposed to the risk associated with various kinds of economic risk which are not controllable in nature.

E. Inflationary risk and additional taxation risk is always lowering the rate of return.

F. Risk of being too conservative is also another risk which will be leading to loss of Return.