How does a company bond compare to a stock?

Status
Not open for further replies.

loosus

Banned
I've never really thought about it until I was reading about GM bondholders getting most of their bonds wiped out.

How does a bond compare to a stock? How do you buy a bond? What are the differences in risk?
 
loosus said:
I've never really thought about it until I was reading about GM bondholders getting most of their bonds wiped out.

How does a bond compare to a stock? How do you buy a bond? What are the differences in risk?

I believe the main difference is that a bond is a type of debt, whereas a stock is a little piece of ownership in the company. Stocks are riskier than bonds but also have the potential for greater rewards if the company does really well.
 
Status
Not open for further replies.
Top Bottom