QAEconomics › What best describes the difference between stocks and bonds?
Q

What best describes the difference between stocks and bonds?

A

Stocks and bonds are investments that people can make for profit or returns. However, they are different. With stocks, investors own a fraction of the company whereas bonds are taken as loans investors give to a company or organization. Therefore, the main difference between bonds and stocks lies in the relationship that exists between the company and the investor. Stocks are representative of shares in an organization implying that the investor becomes a shareholder in the company. With bonds, the investor gets back their money from the company with interest.

2 weeks ago
3 Views