0
Bond is like money you loan to a company. In return, that company promises to pay you back with interest after a certain period of time.
Advantages of bonds are:Less risk than stocksPayout is more stable but usually less in value then stocks
When you buy a stock, you pay to own part of the company. Therefore, the money earned through stocks is directly affected by the performance of the company and demand for their stocks.
So to answer your question, Advantages of stocks:Higher payout ceiling (but more risk)Possible to grow your money extreme quickly
Sell your stock anytime to reap the rewards (bonds are purchased for a set period of time)
However, you or anyone aiding you in investing will need a knowledge of the Stock Market to invest effectively.
Neha Leffler
Add your answer:
Earn +20 pts
What is the differences between a stock and a bond?
A stock represents partial ownership in a company. A bond represents a loan to a company.
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
What is the difference between stock market and bond market?
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
When seeking long-term financing an advantage of issuing bonds over issuing common Stock is that stockholder control is not affected?
TRUE
What is the difference between a bond and a stock?
When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company.
What is a Preferred financial bond?
a bond that uses stock symbol and sells like stock
What is the differences between a stock and a bond?
A stock represents partial ownership in a company. A bond represents a loan to a company.
What is a piece of ownership in a company called?
stock or share
How is a Stock different from a Bond?
A Bond is like a fixed deposit. It is like a loan agreement between the bond issuer and the buyer. The person who owns a bond only has a debt obligation from the bond issuer. On the other hand Stock means ownership. Every stock owner of a company practically owns a portion of that company.
Foreign Currency Convertible Bond?
A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock. These types of bonds are attractive to both investors and issuers. The investors receive the safety of guaranteed payments on the bond and are also able to take advantage of any large price appreciation in the company's stock. (Bondholders take advantage of this appreciation by means warrants attached to the bonds, which are activated when the price of the stock reaches a certain point.) Due to the equity side of the bond, which adds value, the coupon payments on the bond are lower for the company, thereby reducing its debt-financing costs.
What do you call a bond that can be changed into a specified number of shares of the issuers common stock?
Such a bond is an convertible bond.
what does an investmnet analyst job entail?
An analysis job description includes working closely with their client in going over finances and recommending stock and bond purchases. They also go over your existing stock portfolio and make recommendations.
What is the difference between stock market and bond market?
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
When seeking long term financing an advantage of issuing bonds over issuing common stock is that stockholder control is not affected?
TRUE
When seeking long-term financing an advantage of issuing bonds over issuing common Stock is that stockholder control is not affected?
TRUE
What is the difference between a bond and a stock?
When you buy either bonds or stock, you pay money now with the possibility of getting more money later. But a bond represents a debt--the company that issued the bond owes you money to be paid when the bond is redeemed. A stock represents ownership. As a stockholder, you become a part owner of the company.
Will an increase in inflation have a larger impact on the price of a bond or preferred stock?
The preferred stock
