Difference between stock and bond

[Peterlight]

When I got to the bank on Thursday, someone called me and ask me the difference between stock and bond, my answer was it is the same, stock is bond and bond is stock. I thought I have made a good definition not knowing that I just mislead the poor man.

Do anybody have a clear understanding between stock and bond. What makes them different.

 

[vest1992]

I think there was an already thread with this information, but no problem there is one more now. Well at some point things will be cleaned around here and similar threads will be merged into one.

 

[WhiteHouse]

The distinction among stocks and bonds is that stocks are shares in the ownership for business, while bonds are a type of obligation that the responsible element vows to reimburse eventually. Investing in stocks and bonds needs enquiry and research first

 

[Alexandoy]

My understanding with the bond is a negotiable instrument that is issued by the government or a bank or a big company (that is licensed for bonds) to get money. It is a certificate of indebtedness that when you buy a bond that means the issuer is indebted to you for that amount. There is a fixed interest rate on the bond. You can redeem the bond after the term expires usually in 3 months to 1 year. The stocks is what we know in the stock market as the share of ownership in a company.

 

[giddy]

Stocks give you partial ownership in a corporation, while bonds are a loan from you to a company or government. The biggest difference between them is how they generate profit: stocksmust appreciate in value and be sold later on the stock market, while mostbonds pay fixed interest over time.

 

[Nurudeen]

Stock is quite different from bond. Stock is when you buy part of a company Business, in return when you bud stock you are equally a shareholder of that company and its extremely volatile to trade on but as for bond it's like Treasury bills where the government roll out a call for Investors to put their their money in government securities.

 

[Adegbindin Abdullahi]

Stocks gives you a partial ownership in a corporation, while bond are a loan from you to a government or company. The difference is how they generate profit, stocks must appreciate in value and be sold later to the stock market, while most bonds pay fixed interest over time

 

[Highflyer]

The difference between stocks and bonds is that stocks are shares in the ownership of a business, while bonds are a form of debt that the issuing entity promises to repay at some point in the future.

 

[Nida Adnan]

The difference between stocks and bonds is that stocks are shares in the ownership of a business, while bonds are a form of debt that the issuing entity promises to repay at some point in the future.

 

[Suba]

The difference between stocks and bonds is, if stocks are evidence of the ownership of a company, either private or government, while bonds are based on evidence of debt recognition of a private or government company, so stocks will generate dividends, while bonds will generate interest or coupons. In Accounting, when calculating liquidation, bondholders are prioritized for payment, while shareholders are at the very latest in calculations and payments.

 

[Chumzy]

In the simplest form, Stocks are a form of shares which shows element of ownership in a company. It has value and can be said to be an asset. Bond on the other hand is like a credit security certificate. Government bonds are the most popular type of bond.

 

[Trojan8]

Bonds are usually government issued securities backed by the state. They are usually issued as a tool to either control inflation or seek for funds for some projects. While stocks are part a firm's authorized capital offered to the public for subscription.

 

[btaliat]

From the little I know, stock is like a share to me, you buy from companies to become a share holder while bond is usually one of the means by which government borrowed from citizens. I know stock profits vary while bond profit is static. I may be wrong though.

 

[Snobar Bilal]

There are many differences between stocks and bonds. One of the difference is that stocks give you partial ownership in a corporation while bonds are a loan from you to a company or government. The biggest difference between them that how they generate profit.

 

[Sincerem]

I have never heard about bond, I know about stock & shares. Stock & shares, is the means of buying or investing on a company, business looking to make profit if they make any move of getting profit through their investment schemes.

 

[Tiwa]

Stocks are the prices of a company's(private or public limited liability company ) worth express in units while bonds are government monetary tools uses in controlling liquidity in the economy.
Government sells bond to the public whenever there is.too much money in circulation which can in turn lead to inflatiion .

 

[Oliver 20]

Stocks give you fractional possession in an enterprise, while bonds are a credit from you to an organization or government. The greatest contrast between them is the means by which they create benefit: stocks should appreciate in esteem and be sold later on the securities exchange, while most bonds pay fixed interest over the long haul.

 

[Shahid Abbas]

When I got to the bank on Thursday, someone called me and ask me the difference between stock and bond, my answer was it is the same, stock is bond and bond is stock. I thought I have made a good definition not knowing that I just mislead the poor man.

Do anybody have a clear understanding between stock and bond. What makes them different.

Stocks and bonds have a lot of difference i think, because too stocks are more risky, I think there are more chances of getting loss and bonds are good for long term investment and bond good for short time .

 

[Blue house]

Stocks give you incomplete possession in an enterprise, while bonds are a credit from you to an organization or government. The greatest distinction between them is the means by which they create benefit: stocks should appreciate in esteem and be sold later on the securities exchange, while most bonds pay fixed interest after some time.

 

[Zamaney]

Stocks give you partial ownership in a corporation, while bonds are a loan from you to a company or government. The biggest difference between them is how they generate profit: stocks must appreciate in value and be sold later on the stock market, while most bonds pay fixed interest over time