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There are three.
1. What they are: Bonds are basically a loan of money to a company. Stocks denote partial ownership in the company.
2. Rate of return: Stocks offer a potentially higher rate of return because they're riskier than bonds are. (The "high yield" or "junk" bond has returns similar to stocks, but it's about as risky as stock.)
3. If the company defaults, bondholders are paid in full before stockholders get anything.
That's corporate bond basics. There are also municipal bonds--those issued by a government body from state level down to agencies of city governments--and Treasuries, which are issued by the federal government.
What else can I help you with?
Generally which is riskier investing in common stocks againts investment in bonds?
Common stock is riskier than bonds. Common stock fluctuates in price as a matter of course. Bonds tell you What they will pay, When they will pay it and For How Long they will pay it. Assuming the company doesn't go into default, bonds are safe. (The risk of bonds is that companies DO go into default, which is why bonds are rated.)
How does preferred stock differ from common stock?
pay dividend before common stock
Is preferred stock considered to be more like common stock or bonds?
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
Which of the following is not an advantage of issuing bonds instead of common stock?
Earnings per share on common stock are always lower.
What are the benefits of investing in Coca-Cola preferred stock?
Investing in Coca-Cola preferred stock can provide benefits such as receiving fixed dividends, priority over common stockholders in case of company liquidation, and potential for capital appreciation.
Generally which is riskier investing in common stocks againts investment in bonds?
Common stock is riskier than bonds. Common stock fluctuates in price as a matter of course. Bonds tell you What they will pay, When they will pay it and For How Long they will pay it. Assuming the company doesn't go into default, bonds are safe. (The risk of bonds is that companies DO go into default, which is why bonds are rated.)
What is the potential profit from investing in stocks and bonds?
The amount that you could earn from investing in stocks and bonds depends on the stock or bond that you have invested in. You can find out all about them on the website Investopedia.
How does preferred stock differ from common stock?
pay dividend before common stock
Is preferred stock considered to be more like common stock or bonds?
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
What are some alternatives to investing in the stock market?
Some alternatives to investing in the stock market incluse CDs, real estate, annuities, and bonds. Also, opening a savings account is a good option for some people.
What are the three major categories of funds?
The three major categories of funds are common stock, bond, and money market
What are the three types of securities issued by a corporations?
common stock, preferred stock, and bonds
Which of the following is not an advantage of issuing bonds instead of common stock?
Earnings per share on common stock are always lower.
What are the rewards for investing in bonds?
The rewards are that you receive a stipulated interest rate every six months, no matter what the stock market is doing.
Where are the best places online to find stock charts.?
If you are thinking about investing some of your savings into stock bonds. You will find out about stock charts if you go to this website http://www.stocktradingtogo.com/2009/01/27/best-free-stock-chart-websites/
What are examples of primary and secondary securities?
A primary security is issued directly by a corporation to an investor. For example, a share of common stock issued directly by a company to you, an investor, is a primary security. A secondary security is one that is issued by a financial intermediary. For example, when you are investing in a mutual fund, you're investing in a secondary security - the issuing corporation sells its stock to the mutual fund, and you buy a share of the fund, not a direct share of stock from the issuing corporation. Some other examples of primary securities: Common stocks, corporate bonds, US Government bonds Secondary: Mutual Funds, money market funds, commercial paper, Certificate of Deposits
Where can one go to learn how to invest stocks?
The books Stock Investing For Dummies and The Complete Idiot's Guide to Stock Investing provide basic information on stock investing in layman's terms.
