What is the difference between shares and bonds?

What is the difference between shares and bonds?

  • Answer:

    Share is you buy a share in a company (by buying 10 shares you own that part of the company). If the company makes profit, you gain ..if it loses you lose money.you can lose your entire money if the company goes bankrupt. Bonds: you lend money to the company by buying bonds. the returns are fixed, your investment is guaranteed based on the Securities exchange comission rules. Bonds reduce the chance of making good money when the stock price shoots up.

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Other answers

shares represent ownership. bonds represent debt.

melvinschmugmeier

Shares are a stake you buy in a company. Bonds are money that you loan to business or the government (corporate bonds, gov't bonds / t bills).

Storm_Seeker17

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