What is the difference between stocks and bonds?
Author: Asael Becker
Website: http://www.ABC-Bonds.com
Added: Sun, Sep 24, 2006 19:58:06
Category: Bonds Questions
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Stocks and bonds are basically similar, yet they have differences. Here is an explanation of how they are similar and how they are different:
- Stocks – Buying a company's stocks are like buying a partial ownership of the company. For example, if you bought 1 thousand shares of a particular company with 1 million shares, you would have 1% ownership of the company.
- Bonds – Bonds are not particularly ownership of a company. If a company issues bonds, it is usually to raise money for something like opening a new store. You will become a creditor of the company and the company will pay you back over the life of the bond, with interest.
Both are potential moneymakers, but as you can see, both are very different kinds of investment. It is up to you to determine which suits you best.
keywords: Bond | Bonds | Financing | Stocks | Investment About the Author:
Asael Becker answers frequently asked bonds questions at PrettyGreatAnswers.com.
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