DIFFERENCE BETWEEN STOCK AND BONDS

DIFFERENCE BETWEEN STOCK AND BONDS

Shares and bonds are a form of investment of a company to another company in the form of securities. Although both investments, stocks and bonds have some differences. Here is the difference:

Investigation in stock

Investment Meaning : Giving ownership rights to other companies

Replies of Service : Entitled to the share of the company's earnings in the form of dividend and its value is not fixed

Risks : Participate in losses worth of investments, if the company concerned is suffering huge losses or losses

Investments in Bonds

Investment Meaning : Lending company money to other companies

Replies of Service : Eligible for a fixed rate of interest

Risks : Will not suffer losses if the company is a loss or bankruptcy

Often people are confused and difficult to distinguish between stocks and bonds.
Well, hopefully with this explanation can help .