Bonds and stocks are both securities but they are different in-02136
This subjective question is related to the book/course
vu mgt603 Strategic Management.
It can also be found in
vu mgt603 Mid Term Solved Past Paper No. 1.
Stock shows the ownership but bond do not show that. Bond generate a fixed return( interest) but stocks have variable return.
Bonds are the most important fixed income securities. A bond is a legal obligation to repay a loan's principal and interest, but carries no obligation to pay more than this. Interest is the cost of borrowing money.
Although all common shares represent an ownership interest in the company, the investment characteristics of these shares differ widely. Some share are stable, some are volatile. Some pay dividends, some don't. Some are speculations about events years in the future, other are investments in current results; investors often place stock into a particular group according to its investment characteristics.
