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.
Wiki User
∙ 14y ago
Wiki User
∙ 11y ago2 advantages are... it usually guarantee return and if company is in trouble stock lose value then bond.
Add your answer:
Earn +20 pts
Difference between stocks and bonds?
stocks are stocks and bonds are bonds . flatout -ashes
Do corporations issue stocks and bonds?
They do in fact issue stocks and bonds.
Who regulates stocks and bonds?
There is one government agency - Security and Exchange Commission (SEC) and two Self Regulating Organizations (SROs) who mandate or administer regulations for stocks and bonds: NASD (They recently changed the name to FINRA) and MSRB. * SEC regulates stocks, treasury securities, and municipal bonds * FINRA administers regulations by SEC for Over The Counter stocks (e.g., the stocks traded on NASDQ). * MSRB administers regulations by SEC in relations to Municipal Stocks. * Corporate bonds and notes are hardly regulated, since thy mostly trade in Over The Counter markets.
What is more risky stocks or bonds?
Stocks.
Which earns interest stocks or bonds?
bonds
Is online forex with stocks and bonds?
Foreign Exchange (Forex) buys and sells currencies, most of which include the U.S. dollar. Because they support OTC (over the counter) you are able to use stocks and bonds.
What is stock exchange and what is stocks and bonds?
A stock exchange is a place where stocks are traded. Stocks are shares of a company. Bonds are like a loan to a company.
Will long term debt increase when you issue stocks and bonds?
When a company issues bonds, yes. Stocks, no.
What was the long term goal for the federal securities act?
To regulate stocks and bonds.
What happens to stocks and bonds after the stockholder dies?
They become part of the deceased persons estate If the decedent had a will, the stocks and bonds pass on to the wills beneficiaries If there was no will, the state intestacy laws determine who gets the stocks and bonds
Where can a person go to get tips on stocks and bonds?
Many websites that deal with investments of stocks and bonds will provide tips on them. Websites such as Daily Finance, Stock Twits, and Learn Bonds will give many useful tips for picking the right stocks and bonds.
Which is more liquid stocks bonds?
Stocks are considered much more liquid than bonds. This is because stocks are riskier and the value of the stock is determined by the present market.
