The Differences between Stocks and Bonds

The most obvious difference between stocks and bonds are that – stocks enable the investor to own a part of the company, while the bonds are nothing but loans that the investors provide to the company. Stockholders would benefit or lose as per the fate of the company, but investors in bonds will get a fixed rate of return; this would be a percentage that would be the original offering price on the bond, known as the coupon rate. Moreover, bonds have a maturity date after which the principal amount is returned. These maturity dates could go as long as thirty years for maturity. Read More>>