Difference Between Stock And Bond
The main dissimilarities or difference between stocks and bonds can be pointed out as follows:
1. Definition
Stock: A type of financial securities that offers ownership in business company
Bond: A type of long term debt or borrowing of the company issued to raise adequate capital
2. Form Of Return
Stock: In the form of dividend
Bond: In the form of interest
3. Guaranteed
Stock: No guarantee of return or dividend
Bond: Interest is guaranteed
4. Repayment
Stock: Not guaranteed
Bond: guaranteed
5. Risk Involved
Stock: It involves high risk
Bond: It involves less risk
6. Voting Right
Stock: Yes
Bond: No
7. Status Of Holders
Stock: Shareholders or owners of the company
Bond: Lenders of the company
Also Read:
Also Read:
8. Maturity Period
Stock: No fixed maturity period
Bond: It has a fixed maturity period
9. Representation
Stock: It represents an ownership
Bond: It represents a debt
Stock Vs Bond (Comparison Chart)
I hope this post is helpful to understand the difference between stock and bond and make comparison between them.
Stock Vs Bond (Comparison Chart)
Basis For Difference
|
Stock
|
Bond
|
Introduction
|
Financial securities that offers ownership in the company
|
Long term borrowing of the company
|
Return
|
Dividend
|
Interest
|
Guarantee Of Return
|
No
|
Yes
|
Repayment Guarantee
|
No
|
Yes
|
Level Of Risk
|
High
|
Less
|
Right To Vote
|
Yes
|
No
|
Holder's Status
|
Owner
|
Lender
|
Maturity Period
|
Not fixed
|
Fixed
|
Represents
|
Ownership
|
Debt
|
I hope this post is helpful to understand the difference between stock and bond and make comparison between them.
