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What is the difference between bonds and stocks?

Why some companies issue stocks and others issue bonds? what is/are the difference/s?

  • Answer:

    Companies issue bonds when thy need shortterm funds i.e. to meet their shortfall in current liabilities. Bonds dont carry any voting rights jst a fixed amount of interest is payable to investors aftr maturity. where as companies issue stocks for long term requirement, shareholders have voting rights and shareholders have ownership of company with respective to percentage of share thy hold. They take part when company earns profits n thy ve to bear loss if company is in loss.

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Companies issue bonds when thy need shortterm funds i.e. to meet their shortfall in current liabilities. Bonds dont carry any voting rights jst a fixed amount of interest is payable to investors aftr maturity. where as companies issue stocks for long term requirement, shareholders have voting rights and shareholders have ownership of company with respective to percentage of share thy hold. They take part when company earns profits n thy ve to bear loss if company is in loss.

Bhupesh Saxena

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