Question 11 • Personal Finance - EL3403
A start-up company is new and may not have a proven record of making profits, so its stock can rise or fall sharply and investors could lose much of their money. This makes stock in a start-up company a high-risk investment. Bonds and insured bank CDs are generally lower risk, while a 401(k) is an account type whose risk depends on the investments it holds.
AI-written and checked against the verified answer.