Stock investments represent ownership in a company, while bond investments are loans made to a company or government. Stocks offer potential for higher returns but come with more risk, while bonds provide more stability and a fixed income stream.
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
A stock represents ownership in a company, while a bond is a form of debt issued by a company or government that pays interest to the bondholder.
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.
Equity investments usually consist of stocks that are traded on the stock exchanges, or stock mutual funds where the money of a large number of investors is pooled and spread over a number of different stocks. Fixed-income investments include vehicles like corporate or government bonds or bond mutual funds. Bank certificates of deposit (CDs) and savings accounts that feature a fixed interest rate are also considered to be fixed-income investments.
A stock represents partial ownership in a company. A bond represents a loan to a company.
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
A stock represents ownership in a company, while a bond is a form of debt issued by a company or government that pays interest to the bondholder.
Equity is bought and sold in the stock market while debt is bought and sold in the bond market.
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.
Equity investments usually consist of stocks that are traded on the stock exchanges, or stock mutual funds where the money of a large number of investors is pooled and spread over a number of different stocks. Fixed-income investments include vehicles like corporate or government bonds or bond mutual funds. Bank certificates of deposit (CDs) and savings accounts that feature a fixed interest rate are also considered to be fixed-income investments.
A stock represents partial ownership in a company. A bond represents a loan to a company.
stock investments being relatively more attractive relative to bond investments made by one corporation in another corporation.
The main difference between stocks and bonds is that stocks give you partial ownership in a corporation, while bonds are a loan from you to a company or government.
Ionic bond: the difference between electronegativities of the atoms is over 2.Covalent polar bond: the difference between electronegativities of the atoms is under 2.Covalent non-polar bond: the difference between electronegativities of the atoms is cca. zero
The type of bond that forms between atoms or compounds is determined by the electronegativity difference between the atoms involved in the bond. If the electronegativity difference is small, a covalent bond forms, where electrons are shared. If the electronegativity difference is large, an ionic bond forms, where electrons are transferred.
Yield to worst is the lowest potential yield an investor can receive on a bond, considering all possible scenarios. Yield to call, on the other hand, is the yield an investor would receive if the bond is called by the issuer before it matures.
Some general rules are:- the difference between the electronegativities of two atoms is over 2: ionic bond- the difference between the electronegativities of two atoms is in the range 0 -2: covalent bond- the difference between the electronegativities of two atoms is approx. zero: polar covalent bond