Identify whether each scenario is a characteristic or an example of a stock or bond

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02-08-2022
Business

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Identify whether each scenario is a characteristic or an example of a stock or bond

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smecloudbird17 smecloudbird17 · Answer 1 · 2022-08-15T16:33:43+02:00

The main difference between selling stock or bond is that, a selling stock gives away some ownership of the company with no other obligations. A bond on the other hand requires you to pay the principal with interest when it matures.

The selling stock in a market will give you a partial ownership in a corporation, while bonds are a considered as a loan from you to a company or government.

The biggest difference between selling stock and bond is how they generate profit. For instance, the stocks must appreciate in value and be sold later in the stock market, while most bonds pay fixed interest over time.

Hence, stocks and bonds differ.

To learn more about stocks and bonds here:

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