Broadly there are 2 types of security instruments.
Companies need funds for various reasons and they can get the money from public by issuing IPO (Stcoks) and Bonds. They may also borrow funds from lending banks.
Major difference between stocks and bonds is that stocks can not guarantee you any returns but bonds will give you fixed returns annually. Another difference is that in case company tuns bankrupt, share holders will get money only after all lenders and bond holders have been paid off. So stocks are riskier than bonds.
What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com
- Stocks
- Bonds
Companies need funds for various reasons and they can get the money from public by issuing IPO (Stcoks) and Bonds. They may also borrow funds from lending banks.
Major difference between stocks and bonds is that stocks can not guarantee you any returns but bonds will give you fixed returns annually. Another difference is that in case company tuns bankrupt, share holders will get money only after all lenders and bond holders have been paid off. So stocks are riskier than bonds.
What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com
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