Category: Money tips Release Date: 2006-11-27
Comparison of bonds and stocks:
1, the same point:
1, both of which are securities two, both means of financing 3, both the yield interaction.
2, the difference
1, the two different from the right. Bonds are debt certificates, bond issuers and bond holders of claims and liabilities between the bond holders can only withdraw on schedule for interest and principal due, right to participate in the company's business decisions. The stock is different, the stock is a document of title, the stock is owned by shareholders of the company issuing the stock, shareholders generally have the right to vote can be exercised through the election of directors of the company's operating decision-making power and supervisory power.
2, the two different purposes. Issuing bonds is the company's need for additional funds, it belongs to the company's debt, not capital. Issued shares of company stock is the founder of enterprises and the need for additional capital funds raised, included in the company's capital.
3, the two timelines. Bond maturities generally have provided is a term investment. The stock is usually not pay their debts, once investment in shares, the shareholders can not be retrieved from the AG, the principal, therefore, the stock is a non-phase investment, or a permanent investment.
4, the two different benefits. Bonds, there is a specific interest rate, get a fixed interest; and stock dividends are not fixed, in general, as the company's operating condition.
5, the two different risk. Higher risk stocks, bonds, the risk is relatively small.
