What is the difference between a bond and a stock

The difference between stocks and bonds.Stocks offer higher risk and reward than bonds do.Bond interest is guaranteed, while dividends are not.They also are less risky than stocks.Bond issuers while stocks are issued only by corporate entities, bonds can be issued by anything with the authority to borrow money.Hence, stocks prove to be riskier than bonds.

Stocks gain their value based on the supply and demand in the stock market.When it comes to stock, their prices keep fluctuating, sometimes leading to higher risk, whereas, most of the bonds repay the entire amount at the time of maturity.The value of your tiny piece of the company depends on the volatile stock market.Those who own bonds receive a fixed amount of interest over time.Which is the right one?In contrast, bonds pay back your money plus interest over a specified period of time.

Bonds areloans that you give to a corporation or, in some cases, the government that they pay off with interest.Bonds vs stocks capital gains and dividends.Since bonds are generally more complicated than stocks, i need to say a bit more about bonds in order to fill out the picture of the differences between the two.Stocks and bonds also offer different risk levels and returns on investment.