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.
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.)
pay dividend before common stock
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
Earnings per share on common stock are always lower.
You can learn the basics of stock investing on Money works4me's Stock Shastra Blog , a space where you will find interesting posts on timeless principles of stock investing which will empower you to be a sensible stock investor.
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.)
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.
pay dividend before common stock
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
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.
The three major categories of funds are common stock, bond, and money market
common stock, preferred stock, and bonds
Earnings per share on common stock are always lower.
The rewards are that you receive a stipulated interest rate every six months, no matter what the stock market is doing.
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/
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.
You can learn the basics of stock investing on Money works4me's Stock Shastra Blog , a space where you will find interesting posts on timeless principles of stock investing which will empower you to be a sensible stock investor.