Financial advice is often loaded with misconceptions and misinformation. In the latest edition of Finance Fallacy, Paul Solman and Boston University professor Zvi Bodie debunk the belief that investing in stocks is the safest, smartest route to financial security over…

Question: Who pays the rating agencies, like Moody’s? What is the source of their income? Paul Solman: That’s been the scandal. They’re paid by the issuers of the bonds and stocks they rate. They thus have a huge incentive not…

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