Equity, Debt, and Investment Risks

Free FINRA SIE (Securities Industry Essentials) lesson in Understanding Products and Their Risks. 22 min read, ~3,232 words.

Common stock = ownership, voting, last in liquidation; preferred = fixed dividend, no voting, ahead of common but behind bonds. Bond prices and yields move inversely; longer duration and lower coupon = more price sensitivity. Treasuries carry no credit risk but full interest rate risk; munis offer federal tax exemption...